Correlation Between Beijing Lanxum and Xinjiang Tianrun
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By analyzing existing cross correlation between Beijing Lanxum Tech and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Beijing Lanxum 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 Beijing Lanxum with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Lanxum and Xinjiang Tianrun.
Diversification Opportunities for Beijing Lanxum and Xinjiang Tianrun
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Xinjiang is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Lanxum Tech 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 Beijing Lanxum 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 Lanxum Tech 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 Beijing Lanxum i.e., Beijing Lanxum and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Beijing Lanxum and Xinjiang Tianrun
Assuming the 90 days trading horizon Beijing Lanxum Tech is expected to generate 2.46 times more return on investment than Xinjiang Tianrun. However, Beijing Lanxum is 2.46 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.12 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about 0.01 per unit of risk. If you would invest 218.00 in Beijing Lanxum Tech on December 2, 2024 and sell it today you would earn a total of 529.00 from holding Beijing Lanxum Tech or generate 242.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Beijing Lanxum Tech vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Beijing Lanxum Tech |
| Xinjiang Tianrun Dairy |
Beijing Lanxum and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Lanxum and Xinjiang Tianrun
The main advantage of trading using opposite Beijing Lanxum and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Lanxum 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.| Beijing Lanxum vs. Anshan Senyuan Road | Beijing Lanxum vs. Fujian Longzhou Transportation | Beijing Lanxum vs. Guizhou BroadcastingTV Info | Beijing Lanxum vs. Dazhong Transportation Group |
| Xinjiang Tianrun vs. V V Food | Xinjiang Tianrun vs. Shandong Publishing Media | Xinjiang Tianrun vs. GUOMAI Culture Media | Xinjiang Tianrun vs. Huawen Media 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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