Correlation Between Xinjiang Communications and China Marine
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By analyzing existing cross correlation between Xinjiang Communications Construction and China Marine Information, you can compare the effects of market volatilities on Xinjiang Communications and China Marine 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 China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and China Marine.
Diversification Opportunities for Xinjiang Communications and China Marine
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xinjiang and China is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and China Marine go up and down completely randomly.
Pair Corralation between Xinjiang Communications and China Marine
Assuming the 90 days trading horizon Xinjiang Communications is expected to generate 7.07 times less return on investment than China Marine. In addition to that, Xinjiang Communications is 1.11 times more volatile than China Marine Information. It trades about 0.0 of its total potential returns per unit of risk. China Marine Information is currently generating about 0.01 per unit of volatility. If you would invest 2,424 in China Marine Information on October 11, 2024 and sell it today you would earn a total of 16.00 from holding China Marine Information or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. China Marine Information
Performance |
| Timeline |
| Xinjiang Communications |
| China Marine Information |
Xinjiang Communications and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and China Marine
The main advantage of trading using opposite Xinjiang Communications and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine's long position.| Xinjiang Communications vs. Anji Foodstuff Co | Xinjiang Communications vs. Shanghai Ziyan Foods | Xinjiang Communications vs. Beijing Sanyuan Foods | Xinjiang Communications vs. Xiwang Foodstuffs Co |
| China Marine vs. Zhongshan Public Utilities | China Marine vs. Chongqing Changan Automobile | China Marine vs. Digital China Information | China Marine vs. Guangzhou Ruoyuchen Information |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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