Correlation Between Xinjiang Communications and Yantai North
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By analyzing existing cross correlation between Xinjiang Communications Construction and Yantai North Andre, you can compare the effects of market volatilities on Xinjiang Communications and Yantai North 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 Yantai North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Yantai North.
Diversification Opportunities for Xinjiang Communications and Yantai North
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Yantai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Yantai North Andre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yantai North Andre 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 Yantai North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yantai North Andre has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Yantai North go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Yantai North
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 0.81 times more return on investment than Yantai North. However, Xinjiang Communications Construction is 1.23 times less risky than Yantai North. It trades about 0.04 of its potential returns per unit of risk. Yantai North Andre is currently generating about -0.05 per unit of risk. If you would invest 1,128 in Xinjiang Communications Construction on September 3, 2024 and sell it today you would earn a total of 152.00 from holding Xinjiang Communications Construction or generate 13.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Communications Constr vs. Yantai North Andre
Performance |
| Timeline |
| Xinjiang Communications |
| Yantai North Andre |
Xinjiang Communications and Yantai North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Communications and Yantai North
The main advantage of trading using opposite Xinjiang Communications and Yantai North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Yantai North 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 Yantai North will offset losses from the drop in Yantai North'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 |
| Yantai North vs. StarPower Semiconductor | Yantai North vs. China Publishing Media | Yantai North vs. Union Semiconductor Co | Yantai North vs. Nexchip Semiconductor Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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