Correlation Between Xinjiang Communications and Shaanxi Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Communications Construction and Shaanxi Energy Investment, you can compare the effects of market volatilities on Xinjiang Communications and Shaanxi Energy 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 Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Shaanxi Energy.
Diversification Opportunities for Xinjiang Communications and Shaanxi Energy
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Shaanxi is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment 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 Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Shaanxi Energy
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.51 times more return on investment than Shaanxi Energy. However, Xinjiang Communications is 1.51 times more volatile than Shaanxi Energy Investment. It trades about 0.06 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.08 per unit of risk. If you would invest 1,269 in Xinjiang Communications Construction on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Xinjiang Communications Construction or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Xinjiang Communications |
| Shaanxi Energy Investment |
Xinjiang Communications and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Shaanxi Energy
The main advantage of trading using opposite Xinjiang Communications and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. PetroChina Co Ltd |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Gansu Jiu Steel | Shaanxi Energy vs. Shandong Mining Machinery | Shaanxi Energy vs. Aba Chemicals Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |