Correlation Between Guilin Seamild and Xinjiang Tianrun
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By analyzing existing cross correlation between Guilin Seamild Foods and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Guilin Seamild and Xinjiang Tianrun 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 Guilin Seamild with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Xinjiang Tianrun.
Diversification Opportunities for Guilin Seamild and Xinjiang Tianrun
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guilin and Xinjiang is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy and Guilin Seamild 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 Guilin Seamild Foods are associated (or correlated) with Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Guilin Seamild and Xinjiang Tianrun
Assuming the 90 days trading horizon Guilin Seamild is expected to generate 1.92 times less return on investment than Xinjiang Tianrun. In addition to that, Guilin Seamild is 1.71 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.07 of its total potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about 0.23 per unit of volatility. If you would invest 859.00 in Xinjiang Tianrun Dairy on November 27, 2024 and sell it today you would earn a total of 49.00 from holding Xinjiang Tianrun Dairy or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Guilin Seamild Foods |
| Xinjiang Tianrun Dairy |
Guilin Seamild and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Xinjiang Tianrun
The main advantage of trading using opposite Guilin Seamild and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Guilin Seamild vs. BrightGene Bio Medical | Guilin Seamild vs. Guangdong Transtek Medical | Guilin Seamild vs. Allgens Medical Technology | Guilin Seamild vs. Xiangyu Medical Co |
| Xinjiang Tianrun vs. Rising Nonferrous Metals | Xinjiang Tianrun vs. Universal Scientific Industrial | Xinjiang Tianrun vs. Linewell Software Co | Xinjiang Tianrun vs. Gem Year Industrial Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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