Correlation Between Xinjiang Communications and Shenzhen Centralcon
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By analyzing existing cross correlation between Xinjiang Communications Construction and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Xinjiang Communications and Shenzhen Centralcon 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 Communications with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Shenzhen Centralcon.
Diversification Opportunities for Xinjiang Communications and Shenzhen Centralcon
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Shenzhen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Xinjiang Communications 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 Communications Construction are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Shenzhen Centralcon
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.05 times more return on investment than Shenzhen Centralcon. However, Xinjiang Communications is 1.05 times more volatile than Shenzhen Centralcon Investment. It trades about 0.11 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.11 per unit of risk. If you would invest 864.00 in Xinjiang Communications Construction on September 21, 2024 and sell it today you would earn a total of 325.00 from holding Xinjiang Communications Construction or generate 37.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Xinjiang Communications |
| Shenzhen Centralcon |
Xinjiang Communications and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Shenzhen Centralcon
The main advantage of trading using opposite Xinjiang Communications and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Kweichow Moutai Co | Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. China Mobile Limited |
| Shenzhen Centralcon vs. Xinjiang Communications Construction | Shenzhen Centralcon vs. Great Sun Foods Co | Shenzhen Centralcon vs. New Hope Dairy | Shenzhen Centralcon vs. Hubei Yingtong Telecommunication |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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