Correlation Between Changshu Tianyin and Xinjiang Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changshu Tianyin Electromechan and Xinjiang Communications Construction, you can compare the effects of market volatilities on Changshu Tianyin 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 Changshu Tianyin with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Tianyin and Xinjiang Communications.
Diversification Opportunities for Changshu Tianyin and Xinjiang Communications
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changshu and Xinjiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Tianyin Electromechan and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and Changshu Tianyin 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 Changshu Tianyin Electromechan 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 Changshu Tianyin i.e., Changshu Tianyin and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Changshu Tianyin and Xinjiang Communications
Assuming the 90 days trading horizon Changshu Tianyin Electromechan is expected to generate 1.45 times more return on investment than Xinjiang Communications. However, Changshu Tianyin is 1.45 times more volatile than Xinjiang Communications Construction. It trades about 0.07 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.02 per unit of risk. If you would invest 771.00 in Changshu Tianyin Electromechan on September 12, 2024 and sell it today you would earn a total of 1,176 from holding Changshu Tianyin Electromechan or generate 152.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Changshu Tianyin Electromechan vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Changshu Tianyin Ele |
| Xinjiang Communications |
Changshu Tianyin and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Tianyin and Xinjiang Communications
The main advantage of trading using opposite Changshu Tianyin and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Tianyin 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.| Changshu Tianyin vs. JuneYao Dairy Co | Changshu Tianyin vs. New Hope Dairy | Changshu Tianyin vs. China National Software | Changshu Tianyin vs. HaiXin Foods Co |
| Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. PetroChina Co Ltd |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |