Correlation Between Xinjiang Communications and Sichuan Teway
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By analyzing existing cross correlation between Xinjiang Communications Construction and Sichuan Teway Food, you can compare the effects of market volatilities on Xinjiang Communications and Sichuan Teway 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 Sichuan Teway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Sichuan Teway.
Diversification Opportunities for Xinjiang Communications and Sichuan Teway
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Sichuan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Sichuan Teway Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Teway Food 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 Sichuan Teway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Teway Food has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Sichuan Teway go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Sichuan Teway
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.4 times more return on investment than Sichuan Teway. However, Xinjiang Communications is 1.4 times more volatile than Sichuan Teway Food. It trades about 0.01 of its potential returns per unit of risk. Sichuan Teway Food is currently generating about -0.03 per unit of risk. If you would invest 1,312 in Xinjiang Communications Construction on September 3, 2024 and sell it today you would lose (32.00) from holding Xinjiang Communications Construction or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Sichuan Teway Food
Performance |
| Timeline |
| Xinjiang Communications |
| Sichuan Teway Food |
Xinjiang Communications and Sichuan Teway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Sichuan Teway
The main advantage of trading using opposite Xinjiang Communications and Sichuan Teway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Sichuan Teway 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 Sichuan Teway will offset losses from the drop in Sichuan Teway'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 |
| Sichuan Teway vs. Beijing Wantai Biological | Sichuan Teway vs. Aluminum Corp of | Sichuan Teway vs. COL Digital Publishing | Sichuan Teway vs. Shaanxi Meineng Clean |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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