Correlation Between Xinjiang Communications and Tianjin Hi
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By analyzing existing cross correlation between Xinjiang Communications Construction and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Xinjiang Communications and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Tianjin Hi.
Diversification Opportunities for Xinjiang Communications and Tianjin Hi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Tianjin is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Tianjin Hi go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Tianjin Hi
Assuming the 90 days trading horizon Xinjiang Communications is expected to generate 1.01 times less return on investment than Tianjin Hi. But when comparing it to its historical volatility, Xinjiang Communications Construction is 1.01 times less risky than Tianjin Hi. It trades about 0.18 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 276.00 in Tianjin Hi Tech Development on September 3, 2024 and sell it today you would earn a total of 29.00 from holding Tianjin Hi Tech Development or generate 10.51% 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. Tianjin Hi Tech Development
Performance |
| Timeline |
| Xinjiang Communications |
| Tianjin Hi Tech |
Xinjiang Communications and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Tianjin Hi
The main advantage of trading using opposite Xinjiang Communications and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi'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 |
| Tianjin Hi vs. Xinjiang Communications Construction | Tianjin Hi vs. CICT Mobile Communication | Tianjin Hi vs. Shandong Homey Aquatic | Tianjin Hi vs. Hunan Mendale Hometextile |
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 CEOs Directory module to screen CEOs from public companies around the world.
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