Correlation Between Xinjiang Communications and Sichuan Jinshi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Communications Construction and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Xinjiang Communications and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Sichuan Jinshi.
Diversification Opportunities for Xinjiang Communications and Sichuan Jinshi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Sichuan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Sichuan Jinshi
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.2 times more return on investment than Sichuan Jinshi. However, Xinjiang Communications is 1.2 times more volatile than Sichuan Jinshi Technology. It trades about 0.18 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.01 per unit of risk. If you would invest 1,159 in Xinjiang Communications Construction on September 4, 2024 and sell it today you would earn a total of 126.00 from holding Xinjiang Communications Construction or generate 10.87% 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. Sichuan Jinshi Technology
Performance |
| Timeline |
| Xinjiang Communications |
| Sichuan Jinshi Technology |
Xinjiang Communications and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Sichuan Jinshi
The main advantage of trading using opposite Xinjiang Communications and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Xinjiang Communications vs. China Life Insurance | Xinjiang Communications vs. Cinda Securities Co | Xinjiang Communications vs. Piotech Inc A | Xinjiang Communications vs. Dongxing Sec Co |
| Sichuan Jinshi vs. Zijin Mining Group | Sichuan Jinshi vs. Wanhua Chemical Group | Sichuan Jinshi vs. Baoshan Iron Steel | Sichuan Jinshi vs. Rongsheng Petrochemical Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| 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 | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |