Correlation Between Xinjiang Tianshun and Sichuan Jinshi
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By analyzing existing cross correlation between Xinjiang Tianshun Supply and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Xinjiang Tianshun and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianshun and Sichuan Jinshi.
Diversification Opportunities for Xinjiang Tianshun and Sichuan Jinshi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Sichuan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianshun Supply and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Xinjiang Tianshun i.e., Xinjiang Tianshun and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Xinjiang Tianshun and Sichuan Jinshi
Assuming the 90 days trading horizon Xinjiang Tianshun is expected to generate 1.33 times less return on investment than Sichuan Jinshi. In addition to that, Xinjiang Tianshun is 1.14 times more volatile than Sichuan Jinshi Technology. It trades about 0.05 of its total potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about 0.08 per unit of volatility. If you would invest 570.00 in Sichuan Jinshi Technology on September 3, 2024 and sell it today you would earn a total of 144.00 from holding Sichuan Jinshi Technology or generate 25.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianshun Supply vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Xinjiang Tianshun Supply |
| Sichuan Jinshi Technology |
Xinjiang Tianshun and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianshun and Sichuan Jinshi
The main advantage of trading using opposite Xinjiang Tianshun and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianshun position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Xinjiang Tianshun vs. Zhongtong Guomai Communication | Xinjiang Tianshun vs. Guangzhou Haige Communications | Xinjiang Tianshun vs. MayAir Technology Co | Xinjiang Tianshun vs. Gome Telecom Equipment |
| Sichuan Jinshi vs. Zijin Mining Group | Sichuan Jinshi vs. Baoshan Iron Steel | Sichuan Jinshi vs. Hoshine Silicon Ind |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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