Correlation Between Guangxi Wuzhou and Xinjiang Communications
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Xinjiang Communications Construction, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Xinjiang Communications.
Diversification Opportunities for Guangxi Wuzhou and Xinjiang Communications
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangxi and Xinjiang is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Xinjiang Communications
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to under-perform the Xinjiang Communications. In addition to that, Guangxi Wuzhou is 1.7 times more volatile than Xinjiang Communications Construction. It trades about -0.25 of its total potential returns per unit of risk. Xinjiang Communications Construction is currently generating about -0.01 per unit of volatility. If you would invest 1,079 in Xinjiang Communications Construction on November 2, 2024 and sell it today you would lose (6.00) from holding Xinjiang Communications Construction or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Xinjiang Communications |
Guangxi Wuzhou and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Xinjiang Communications
The main advantage of trading using opposite Guangxi Wuzhou and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. Hubei Geoway Investment | Guangxi Wuzhou vs. Juneyao Airlines | Guangxi Wuzhou vs. Beijing Mainstreets Investment | Guangxi Wuzhou vs. Henan Shuanghui Investment |
| Xinjiang Communications vs. PetroChina Co Ltd | Xinjiang Communications vs. China Mobile Limited | Xinjiang Communications vs. CNOOC Limited | Xinjiang Communications vs. Ping An Insurance |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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