Correlation Between Xinjiang Tianshun and Beijing SPC
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By analyzing existing cross correlation between Xinjiang Tianshun Supply and Beijing SPC Environment, you can compare the effects of market volatilities on Xinjiang Tianshun and Beijing SPC 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 Xinjiang Tianshun with a short position of Beijing SPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianshun and Beijing SPC.
Diversification Opportunities for Xinjiang Tianshun and Beijing SPC
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Beijing is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianshun Supply and Beijing SPC Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SPC Environment and Xinjiang Tianshun 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 Xinjiang Tianshun Supply are associated (or correlated) with Beijing SPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SPC Environment has no effect on the direction of Xinjiang Tianshun i.e., Xinjiang Tianshun and Beijing SPC go up and down completely randomly.
Pair Corralation between Xinjiang Tianshun and Beijing SPC
Assuming the 90 days trading horizon Xinjiang Tianshun Supply is expected to generate 1.25 times more return on investment than Beijing SPC. However, Xinjiang Tianshun is 1.25 times more volatile than Beijing SPC Environment. It trades about 0.2 of its potential returns per unit of risk. Beijing SPC Environment is currently generating about 0.23 per unit of risk. If you would invest 911.00 in Xinjiang Tianshun Supply on September 13, 2024 and sell it today you would earn a total of 381.00 from holding Xinjiang Tianshun Supply or generate 41.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianshun Supply vs. Beijing SPC Environment
Performance |
| Timeline |
| Xinjiang Tianshun Supply |
| Beijing SPC Environment |
Xinjiang Tianshun and Beijing SPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianshun and Beijing SPC
The main advantage of trading using opposite Xinjiang Tianshun and Beijing SPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianshun position performs unexpectedly, Beijing SPC 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 Beijing SPC will offset losses from the drop in Beijing SPC's long position.| Xinjiang Tianshun vs. Beijing SPC Environment | Xinjiang Tianshun vs. Hang Xiao Steel | Xinjiang Tianshun vs. King Strong New Material | Xinjiang Tianshun vs. Tianjin Capital Environmental |
| Beijing SPC vs. Kweichow Moutai Co | Beijing SPC vs. Contemporary Amperex Technology | Beijing SPC vs. G bits Network Technology | Beijing SPC vs. BYD Co Ltd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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