Correlation Between Tianjin Ruixin and XinJiang GuoTong
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By analyzing existing cross correlation between Tianjin Ruixin Technology and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Tianjin Ruixin and XinJiang GuoTong 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 Tianjin Ruixin with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Ruixin and XinJiang GuoTong.
Diversification Opportunities for Tianjin Ruixin and XinJiang GuoTong
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tianjin and XinJiang is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Ruixin Technology and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Tianjin Ruixin 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 Tianjin Ruixin Technology are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Tianjin Ruixin i.e., Tianjin Ruixin and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Tianjin Ruixin and XinJiang GuoTong
Assuming the 90 days trading horizon Tianjin Ruixin Technology is expected to under-perform the XinJiang GuoTong. But the stock apears to be less risky and, when comparing its historical volatility, Tianjin Ruixin Technology is 1.1 times less risky than XinJiang GuoTong. The stock trades about -0.28 of its potential returns per unit of risk. The XinJiang GuoTong Pipeline is currently generating about -0.24 of returns per unit of risk over similar time horizon. If you would invest 1,010 in XinJiang GuoTong Pipeline on October 14, 2024 and sell it today you would lose (230.00) from holding XinJiang GuoTong Pipeline or give up 22.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Ruixin Technology vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Tianjin Ruixin Technology |
| XinJiang GuoTong Pipeline |
Tianjin Ruixin and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Ruixin and XinJiang GuoTong
The main advantage of trading using opposite Tianjin Ruixin and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Ruixin position performs unexpectedly, XinJiang GuoTong 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 GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Tianjin Ruixin vs. Zijin Mining Group | Tianjin Ruixin vs. Wanhua Chemical Group | Tianjin Ruixin vs. Baoshan Iron Steel | Tianjin Ruixin vs. Shandong Gold Mining |
| XinJiang GuoTong vs. Nanxing Furniture Machinery | XinJiang GuoTong vs. Digiwin Software Co | XinJiang GuoTong vs. Hunan Tyen Machinery | XinJiang GuoTong vs. Tianjin Ruixin Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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