Correlation Between 159005 and Xinjiang Communications
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By analyzing existing cross correlation between 159005 and Xinjiang Communications Construction, you can compare the effects of market volatilities on 159005 and Xinjiang Communications 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 159005 with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Xinjiang Communications.
Diversification Opportunities for 159005 and Xinjiang Communications
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 159005 and Xinjiang is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and 159005 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 159005 are associated (or correlated) with Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of 159005 i.e., 159005 and Xinjiang Communications go up and down completely randomly.
Pair Corralation between 159005 and Xinjiang Communications
If you would invest 1,070 in Xinjiang Communications Construction on December 1, 2024 and sell it today you would earn a total of 117.00 from holding Xinjiang Communications Construction or generate 10.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Xinjiang Communications Constr
Performance |
| Timeline |
| 159005 |
| Xinjiang Communications |
159005 and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Xinjiang Communications
The main advantage of trading using opposite 159005 and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, Xinjiang Communications 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 Communications will offset losses from the drop in Xinjiang Communications' long position.The idea behind 159005 and Xinjiang Communications Construction pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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