Correlation Between Xinjiang Communications and Chenzhou Jingui
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By analyzing existing cross correlation between Xinjiang Communications Construction and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Xinjiang Communications and Chenzhou Jingui 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 Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Chenzhou Jingui.
Diversification Opportunities for Xinjiang Communications and Chenzhou Jingui
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Chenzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver 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 Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Chenzhou Jingui
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 0.76 times more return on investment than Chenzhou Jingui. However, Xinjiang Communications Construction is 1.31 times less risky than Chenzhou Jingui. It trades about 0.18 of its potential returns per unit of risk. Chenzhou Jingui Silver is currently generating about 0.03 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. Chenzhou Jingui Silver
Performance |
| Timeline |
| Xinjiang Communications |
| Chenzhou Jingui Silver |
Xinjiang Communications and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Chenzhou Jingui
The main advantage of trading using opposite Xinjiang Communications and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui'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 |
| Chenzhou Jingui vs. Songz Automobile Air | Chenzhou Jingui vs. Anhui Jianghuai Automobile | Chenzhou Jingui vs. Zhejiang Yayi Metal | Chenzhou Jingui vs. Xinjiang Communications Construction |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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