Correlation Between Shantou Wanshun and Xinjiang Tianrun
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By analyzing existing cross correlation between Shantou Wanshun Package and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Shantou Wanshun 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 Shantou Wanshun with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Xinjiang Tianrun.
Diversification Opportunities for Shantou Wanshun and Xinjiang Tianrun
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shantou and Xinjiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package 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 Shantou Wanshun 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 Shantou Wanshun Package 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 Shantou Wanshun i.e., Shantou Wanshun and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Xinjiang Tianrun
Assuming the 90 days trading horizon Shantou Wanshun is expected to generate 1.79 times less return on investment than Xinjiang Tianrun. In addition to that, Shantou Wanshun is 1.47 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.08 of its total potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about 0.21 per unit of volatility. If you would invest 849.00 in Xinjiang Tianrun Dairy on August 24, 2024 and sell it today you would earn a total of 93.00 from holding Xinjiang Tianrun Dairy or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Shantou Wanshun Package |
| Xinjiang Tianrun Dairy |
Shantou Wanshun and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Xinjiang Tianrun
The main advantage of trading using opposite Shantou Wanshun and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun 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.| Shantou Wanshun vs. Hainan Mining Co | Shantou Wanshun vs. Xinjiang Baodi Mining | Shantou Wanshun vs. Qingdao Foods Co | Shantou Wanshun vs. Xinjiang Tianrun Dairy |
| Xinjiang Tianrun vs. Air China Ltd | Xinjiang Tianrun vs. Eastern Air Logistics | Xinjiang Tianrun vs. Xiamen Bank Co | Xinjiang Tianrun vs. Guangzhou Shangpin Home |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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