Correlation Between Geron and Xinjiang Beixin
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By analyzing existing cross correlation between Geron Co and Xinjiang Beixin RoadBridge, you can compare the effects of market volatilities on Geron and Xinjiang Beixin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Geron with a short position of Xinjiang Beixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron and Xinjiang Beixin.
Diversification Opportunities for Geron and Xinjiang Beixin
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Geron and Xinjiang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Geron Co and Xinjiang Beixin RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Beixin Road and Geron is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Geron Co are associated (or correlated) with Xinjiang Beixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Beixin Road has no effect on the direction of Geron i.e., Geron and Xinjiang Beixin go up and down completely randomly.
Pair Corralation between Geron and Xinjiang Beixin
Assuming the 90 days trading horizon Geron Co is expected to generate 0.6 times more return on investment than Xinjiang Beixin. However, Geron Co is 1.67 times less risky than Xinjiang Beixin. It trades about -0.02 of its potential returns per unit of risk. Xinjiang Beixin RoadBridge is currently generating about -0.25 per unit of risk. If you would invest 1,501 in Geron Co on October 24, 2024 and sell it today you would lose (23.00) from holding Geron Co or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geron Co vs. Xinjiang Beixin RoadBridge
Performance |
| Timeline |
| Geron |
| Xinjiang Beixin Road |
Geron and Xinjiang Beixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron and Xinjiang Beixin
The main advantage of trading using opposite Geron and Xinjiang Beixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron position performs unexpectedly, Xinjiang Beixin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xinjiang Beixin will offset losses from the drop in Xinjiang Beixin's long position.| Geron vs. ZYF Lopsking Aluminum | Geron vs. Vanfund Urban Investment | Geron vs. Zhejiang Construction Investment | Geron vs. Tianshan Aluminum Group |
| Xinjiang Beixin vs. Fujian Longzhou Transportation | Xinjiang Beixin vs. Jinling Hotel Corp | Xinjiang Beixin vs. Hubeiyichang Transportation Group | Xinjiang Beixin vs. SSAW Hotels Resorts |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.
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