Correlation Between Xinjiang Communications and Shanghai Metersbonwe
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By analyzing existing cross correlation between Xinjiang Communications Construction and Shanghai Metersbonwe FashionAccessories, you can compare the effects of market volatilities on Xinjiang Communications and Shanghai Metersbonwe 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 Shanghai Metersbonwe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Shanghai Metersbonwe.
Diversification Opportunities for Xinjiang Communications and Shanghai Metersbonwe
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Shanghai is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Shanghai Metersbonwe FashionAc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Metersbonwe 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 Shanghai Metersbonwe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Metersbonwe has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Shanghai Metersbonwe go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Shanghai Metersbonwe
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 0.73 times more return on investment than Shanghai Metersbonwe. However, Xinjiang Communications Construction is 1.38 times less risky than Shanghai Metersbonwe. It trades about 0.18 of its potential returns per unit of risk. Shanghai Metersbonwe FashionAccessories is currently generating about 0.12 per unit of risk. If you would invest 1,159 in Xinjiang Communications Construction on September 3, 2024 and sell it today you would earn a total of 121.00 from holding Xinjiang Communications Construction or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Shanghai Metersbonwe FashionAc
Performance |
| Timeline |
| Xinjiang Communications |
| Shanghai Metersbonwe |
Xinjiang Communications and Shanghai Metersbonwe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Shanghai Metersbonwe
The main advantage of trading using opposite Xinjiang Communications and Shanghai Metersbonwe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Shanghai Metersbonwe 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 Shanghai Metersbonwe will offset losses from the drop in Shanghai Metersbonwe's long position.| Xinjiang Communications vs. Cultural Investment Holdings | Xinjiang Communications vs. Gome Telecom Equipment | Xinjiang Communications vs. Bus Online Co | Xinjiang Communications vs. Holitech Technology Co |
| Shanghai Metersbonwe vs. PetroChina Co Ltd | Shanghai Metersbonwe vs. China Mobile Limited | Shanghai Metersbonwe vs. Industrial and Commercial | Shanghai Metersbonwe vs. China Life Insurance |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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