Correlation Between Xinjiang Communications and Zhejiang Publishing
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By analyzing existing cross correlation between Xinjiang Communications Construction and Zhejiang Publishing Media, you can compare the effects of market volatilities on Xinjiang Communications and Zhejiang Publishing 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 Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Zhejiang Publishing.
Diversification Opportunities for Xinjiang Communications and Zhejiang Publishing
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinjiang and Zhejiang is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Publishing Media 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 Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Zhejiang Publishing
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 0.69 times more return on investment than Zhejiang Publishing. However, Xinjiang Communications Construction is 1.45 times less risky than Zhejiang Publishing. It trades about 0.06 of its potential returns per unit of risk. Zhejiang Publishing Media is currently generating about 0.02 per unit of risk. If you would invest 1,269 in Xinjiang Communications Construction on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Xinjiang Communications Construction or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Zhejiang Publishing Media
Performance |
| Timeline |
| Xinjiang Communications |
| Zhejiang Publishing Media |
Xinjiang Communications and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Zhejiang Publishing
The main advantage of trading using opposite Xinjiang Communications and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Zhejiang Publishing 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 Zhejiang Publishing will offset losses from the drop in Zhejiang Publishing's long position.| Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. PetroChina Co Ltd |
| Zhejiang Publishing vs. Kweichow Moutai Co | Zhejiang Publishing vs. Shenzhen Mindray Bio Medical | Zhejiang Publishing vs. G bits Network Technology | Zhejiang Publishing vs. Beijing Roborock Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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