Correlation Between Xinjiang Communications and Gan Yuan
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By analyzing existing cross correlation between Xinjiang Communications Construction and Gan Yuan Foods, you can compare the effects of market volatilities on Xinjiang Communications and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Gan Yuan.
Diversification Opportunities for Xinjiang Communications and Gan Yuan
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Gan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Gan Yuan go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Gan Yuan
Assuming the 90 days trading horizon Xinjiang Communications is expected to generate 1.19 times less return on investment than Gan Yuan. In addition to that, Xinjiang Communications is 1.24 times more volatile than Gan Yuan Foods. It trades about 0.01 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.02 per unit of volatility. If you would invest 7,183 in Gan Yuan Foods on September 3, 2024 and sell it today you would earn a total of 675.00 from holding Gan Yuan Foods or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Gan Yuan Foods
Performance |
| Timeline |
| Xinjiang Communications |
| Gan Yuan Foods |
Xinjiang Communications and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Gan Yuan
The main advantage of trading using opposite Xinjiang Communications and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan'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 |
| Gan Yuan vs. Beijing Wantai Biological | Gan Yuan vs. Aluminum Corp of | Gan Yuan vs. COL Digital Publishing | Gan Yuan vs. Shaanxi Meineng Clean |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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