Correlation Between Beijing Quanshi and Xinjiang Tianshun
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By analyzing existing cross correlation between Beijing Quanshi World and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Beijing Quanshi and Xinjiang Tianshun 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 Beijing Quanshi with a short position of Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Quanshi and Xinjiang Tianshun.
Diversification Opportunities for Beijing Quanshi and Xinjiang Tianshun
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Xinjiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Quanshi World and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply and Beijing Quanshi 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 Beijing Quanshi World are associated (or correlated) with Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Beijing Quanshi i.e., Beijing Quanshi and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Beijing Quanshi and Xinjiang Tianshun
Assuming the 90 days trading horizon Beijing Quanshi is expected to generate 1.05 times less return on investment than Xinjiang Tianshun. In addition to that, Beijing Quanshi is 1.4 times more volatile than Xinjiang Tianshun Supply. It trades about 0.01 of its total potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.02 per unit of volatility. If you would invest 1,265 in Xinjiang Tianshun Supply on September 12, 2024 and sell it today you would earn a total of 27.00 from holding Xinjiang Tianshun Supply or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Quanshi World vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Beijing Quanshi World |
| Xinjiang Tianshun Supply |
Beijing Quanshi and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Quanshi and Xinjiang Tianshun
The main advantage of trading using opposite Beijing Quanshi and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Quanshi position performs unexpectedly, Xinjiang Tianshun 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 Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Beijing Quanshi vs. Maccura Biotechnology Co | Beijing Quanshi vs. Hunan Investment Group | Beijing Quanshi vs. Zoje Resources Investment | Beijing Quanshi vs. Shenzhen Centralcon Investment |
| Xinjiang Tianshun vs. Beijing SPC Environment | Xinjiang Tianshun vs. Hang Xiao Steel | Xinjiang Tianshun vs. King Strong New Material | Xinjiang Tianshun vs. Tianjin Capital Environmental |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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