Correlation Between Xinjiang Sailing and XJ Electric
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By analyzing existing cross correlation between Xinjiang Sailing Information and XJ Electric Co, you can compare the effects of market volatilities on Xinjiang Sailing and XJ Electric 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 Xinjiang Sailing with a short position of XJ Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Sailing and XJ Electric.
Diversification Opportunities for Xinjiang Sailing and XJ Electric
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinjiang and 000400 is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Sailing Information and XJ Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XJ Electric and Xinjiang Sailing 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 Xinjiang Sailing Information are associated (or correlated) with XJ Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XJ Electric has no effect on the direction of Xinjiang Sailing i.e., Xinjiang Sailing and XJ Electric go up and down completely randomly.
Pair Corralation between Xinjiang Sailing and XJ Electric
Assuming the 90 days trading horizon Xinjiang Sailing Information is expected to under-perform the XJ Electric. In addition to that, Xinjiang Sailing is 2.03 times more volatile than XJ Electric Co. It trades about -0.23 of its total potential returns per unit of risk. XJ Electric Co is currently generating about 0.13 per unit of volatility. If you would invest 2,568 in XJ Electric Co on November 3, 2024 and sell it today you would earn a total of 125.00 from holding XJ Electric Co or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Sailing Information vs. XJ Electric Co
Performance |
| Timeline |
| Xinjiang Sailing Inf |
| XJ Electric |
Xinjiang Sailing and XJ Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Sailing and XJ Electric
The main advantage of trading using opposite Xinjiang Sailing and XJ Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Sailing position performs unexpectedly, XJ Electric 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 XJ Electric will offset losses from the drop in XJ Electric's long position.| Xinjiang Sailing vs. Cansino Biologics | Xinjiang Sailing vs. China World Trade | Xinjiang Sailing vs. Fiberhome Telecommunication Technologies | Xinjiang Sailing vs. Tonghua Grape Wine |
| XJ Electric vs. Shengyuan Environmental Protection | XJ Electric vs. Linewell Software Co | XJ Electric vs. Bangyan Technology Co | XJ Electric vs. Central Plains Environment |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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