Correlation Between Chongqing Sulian and Xinjiang Tianrun
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By analyzing existing cross correlation between Chongqing Sulian Plastic and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Chongqing Sulian 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 Chongqing Sulian with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and Xinjiang Tianrun.
Diversification Opportunities for Chongqing Sulian and Xinjiang Tianrun
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and Xinjiang is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic 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 Chongqing Sulian 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 Chongqing Sulian Plastic 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 Chongqing Sulian i.e., Chongqing Sulian and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Chongqing Sulian and Xinjiang Tianrun
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to generate 1.83 times more return on investment than Xinjiang Tianrun. However, Chongqing Sulian is 1.83 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.16 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.18 per unit of risk. If you would invest 2,490 in Chongqing Sulian Plastic on November 3, 2024 and sell it today you would earn a total of 392.00 from holding Chongqing Sulian Plastic or generate 15.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sulian Plastic vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Chongqing Sulian Plastic |
| Xinjiang Tianrun Dairy |
Chongqing Sulian and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sulian and Xinjiang Tianrun
The main advantage of trading using opposite Chongqing Sulian and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian 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.| Chongqing Sulian vs. Jiaozuo Wanfang Aluminum | Chongqing Sulian vs. Cansino Biologics | Chongqing Sulian vs. Zhejiang Yongjin Metal | Chongqing Sulian vs. Wonders Information |
| Xinjiang Tianrun vs. Chengtun Mining Group | Xinjiang Tianrun vs. Guangdong Silvere Sci | Xinjiang Tianrun vs. China Aluminum International | Xinjiang Tianrun vs. Chenzhou Jingui Silver |
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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