Correlation Between Xinjiang Communications and Chinese Universe
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Communications Construction and Chinese Universe Publishing, you can compare the effects of market volatilities on Xinjiang Communications and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Chinese Universe.
Diversification Opportunities for Xinjiang Communications and Chinese Universe
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Chinese is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Chinese Universe go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Chinese Universe
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.23 times more return on investment than Chinese Universe. However, Xinjiang Communications is 1.23 times more volatile than Chinese Universe Publishing. It trades about 0.0 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.03 per unit of risk. If you would invest 1,140 in Xinjiang Communications Construction on November 7, 2024 and sell it today you would lose (67.00) from holding Xinjiang Communications Construction or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Chinese Universe Publishing
Performance |
| Timeline |
| Xinjiang Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Chinese Universe Pub |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xinjiang Communications and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Chinese Universe
The main advantage of trading using opposite Xinjiang Communications and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.The idea behind Xinjiang Communications Construction and Chinese Universe Publishing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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