Correlation Between 159681 and XinJiang GuoTong
Specify exactly 2 symbols:
By analyzing existing cross correlation between 159681 and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on 159681 and XinJiang GuoTong 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 159681 with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and XinJiang GuoTong.
Diversification Opportunities for 159681 and XinJiang GuoTong
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 159681 and XinJiang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and 159681 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 159681 are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of 159681 i.e., 159681 and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between 159681 and XinJiang GuoTong
Assuming the 90 days trading horizon 159681 is expected to generate 1.03 times less return on investment than XinJiang GuoTong. In addition to that, 159681 is 1.04 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.08 of its total potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.08 per unit of volatility. If you would invest 613.00 in XinJiang GuoTong Pipeline on October 26, 2024 and sell it today you would earn a total of 203.00 from holding XinJiang GuoTong Pipeline or generate 33.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| 159681 |
| XinJiang GuoTong Pipeline |
159681 and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and XinJiang GuoTong
The main advantage of trading using opposite 159681 and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, XinJiang GuoTong 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 GuoTong will offset losses from the drop in XinJiang GuoTong's long position.The idea behind 159681 and XinJiang GuoTong Pipeline 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.| XinJiang GuoTong vs. Ming Yang Smart | XinJiang GuoTong vs. 159681 | XinJiang GuoTong vs. 159005 | XinJiang GuoTong vs. Loctek Ergonomic Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |