Correlation Between Xinjiang Communications and Dalian Zeus
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Communications Construction and Dalian Zeus Entertainment, you can compare the effects of market volatilities on Xinjiang Communications and Dalian Zeus 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 Dalian Zeus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Dalian Zeus.
Diversification Opportunities for Xinjiang Communications and Dalian Zeus
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Dalian is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Dalian Zeus Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Zeus Entertainment 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 Dalian Zeus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Zeus Entertainment has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Dalian Zeus go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Dalian Zeus
Assuming the 90 days trading horizon Xinjiang Communications is expected to generate 2.21 times less return on investment than Dalian Zeus. But when comparing it to its historical volatility, Xinjiang Communications Construction is 1.29 times less risky than Dalian Zeus. It trades about 0.15 of its potential returns per unit of risk. Dalian Zeus Entertainment is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 257.00 in Dalian Zeus Entertainment on September 2, 2024 and sell it today you would earn a total of 233.00 from holding Dalian Zeus Entertainment or generate 90.66% 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. Dalian Zeus Entertainment
Performance |
| Timeline |
| Xinjiang Communications |
| Dalian Zeus Entertainment |
Xinjiang Communications and Dalian Zeus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Dalian Zeus
The main advantage of trading using opposite Xinjiang Communications and Dalian Zeus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Dalian Zeus 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 Dalian Zeus will offset losses from the drop in Dalian Zeus' long position.| Xinjiang Communications vs. Ming Yang Smart | Xinjiang Communications vs. 159681 | Xinjiang Communications vs. 159005 | Xinjiang Communications vs. Loctek Ergonomic Technology |
| Dalian Zeus vs. Shenzhen MYS Environmental | Dalian Zeus vs. AVIC Fund Management | Dalian Zeus vs. Penghua Shenzhen Energy | Dalian Zeus vs. Jizhong Energy Resources |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |