Correlation Between Xingyuan Environment and New China
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By analyzing existing cross correlation between Xingyuan Environment Technology and New China Life, you can compare the effects of market volatilities on Xingyuan Environment and New China 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 Xingyuan Environment with a short position of New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xingyuan Environment and New China.
Diversification Opportunities for Xingyuan Environment and New China
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xingyuan and New is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xingyuan Environment Technolog and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life and Xingyuan Environment 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 Xingyuan Environment Technology are associated (or correlated) with New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of Xingyuan Environment i.e., Xingyuan Environment and New China go up and down completely randomly.
Pair Corralation between Xingyuan Environment and New China
Assuming the 90 days trading horizon Xingyuan Environment Technology is expected to generate 2.31 times more return on investment than New China. However, Xingyuan Environment is 2.31 times more volatile than New China Life. It trades about 0.18 of its potential returns per unit of risk. New China Life is currently generating about -0.01 per unit of risk. If you would invest 247.00 in Xingyuan Environment Technology on September 3, 2024 and sell it today you would earn a total of 70.00 from holding Xingyuan Environment Technology or generate 28.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xingyuan Environment Technolog vs. New China Life
Performance |
| Timeline |
| Xingyuan Environment |
| New China Life |
Xingyuan Environment and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xingyuan Environment and New China
The main advantage of trading using opposite Xingyuan Environment and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xingyuan Environment position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| Xingyuan Environment vs. Cultural Investment Holdings | Xingyuan Environment vs. Gome Telecom Equipment | Xingyuan Environment vs. Bus Online Co | Xingyuan Environment vs. Holitech Technology Co |
| New China vs. Dongguan Tarry Electronics | New China vs. TongFu Microelectronics Co | New China vs. Tibet Huayu Mining | New China vs. JCHX Mining Management |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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