Correlation Between Xinjiang Communications and Northern United
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By analyzing existing cross correlation between Xinjiang Communications Construction and Northern United Publishing, you can compare the effects of market volatilities on Xinjiang Communications and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Northern United.
Diversification Opportunities for Xinjiang Communications and Northern United
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Northern is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Northern United go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Northern United
Assuming the 90 days trading horizon Xinjiang Communications is expected to generate 3.28 times less return on investment than Northern United. But when comparing it to its historical volatility, Xinjiang Communications Construction is 1.77 times less risky than Northern United. It trades about 0.06 of its potential returns per unit of risk. Northern United Publishing is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 688.00 in Northern United Publishing on September 12, 2024 and sell it today you would earn a total of 42.00 from holding Northern United Publishing or generate 6.1% 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. Northern United Publishing
Performance |
| Timeline |
| Xinjiang Communications |
| Northern United Publ |
Xinjiang Communications and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Northern United
The main advantage of trading using opposite Xinjiang Communications and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United'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 |
| Northern United vs. Kweichow Moutai Co | Northern United vs. Shenzhen Mindray Bio Medical | Northern United vs. G bits Network Technology | Northern United 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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