Correlation Between Huizhou Desay and XinJiang GuoTong
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By analyzing existing cross correlation between Huizhou Desay SV and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Huizhou Desay and XinJiang GuoTong 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 Huizhou Desay with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huizhou Desay and XinJiang GuoTong.
Diversification Opportunities for Huizhou Desay and XinJiang GuoTong
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Huizhou and XinJiang is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Huizhou Desay SV and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Huizhou Desay 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 Huizhou Desay SV are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Huizhou Desay i.e., Huizhou Desay and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Huizhou Desay and XinJiang GuoTong
Assuming the 90 days trading horizon Huizhou Desay SV is expected to generate 0.45 times more return on investment than XinJiang GuoTong. However, Huizhou Desay SV is 2.2 times less risky than XinJiang GuoTong. It trades about -0.26 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about -0.26 per unit of risk. If you would invest 11,500 in Huizhou Desay SV on October 15, 2024 and sell it today you would lose (1,285) from holding Huizhou Desay SV or give up 11.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huizhou Desay SV vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Huizhou Desay SV |
| XinJiang GuoTong Pipeline |
Huizhou Desay and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huizhou Desay and XinJiang GuoTong
The main advantage of trading using opposite Huizhou Desay and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huizhou Desay position performs unexpectedly, XinJiang GuoTong 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 GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Huizhou Desay vs. Silkroad Visual Technology | Huizhou Desay vs. Zhengping RoadBridge Constr | Huizhou Desay vs. XinJiang GuoTong Pipeline | Huizhou Desay vs. Anshan Senyuan Road |
| XinJiang GuoTong vs. Nanxing Furniture Machinery | XinJiang GuoTong vs. Digiwin Software Co | XinJiang GuoTong vs. Hunan Tyen Machinery | XinJiang GuoTong vs. Tianjin Ruixin Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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