Correlation Between Xinjiang Tianrun and Rongan Property
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Rongan Property Co, you can compare the effects of market volatilities on Xinjiang Tianrun and Rongan Property 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 Tianrun with a short position of Rongan Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Rongan Property.
Diversification Opportunities for Xinjiang Tianrun and Rongan Property
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Rongan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Rongan Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rongan Property and Xinjiang Tianrun 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 Tianrun Dairy are associated (or correlated) with Rongan Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rongan Property has no effect on the direction of Xinjiang Tianrun i.e., Xinjiang Tianrun and Rongan Property go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Rongan Property
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Rongan Property. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.13 times less risky than Rongan Property. The stock trades about -0.05 of its potential returns per unit of risk. The Rongan Property Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 252.00 in Rongan Property Co on October 30, 2024 and sell it today you would lose (59.00) from holding Rongan Property Co or give up 23.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Rongan Property Co
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Rongan Property |
Xinjiang Tianrun and Rongan Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Rongan Property
The main advantage of trading using opposite Xinjiang Tianrun and Rongan Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun position performs unexpectedly, Rongan Property 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 Rongan Property will offset losses from the drop in Rongan Property's long position.| Xinjiang Tianrun vs. XiaMen HongXin Electron tech | Xinjiang Tianrun vs. Ningbo MedicalSystem Biotechnology | Xinjiang Tianrun vs. Linewell Software Co | Xinjiang Tianrun vs. Dhc Software Co |
| Rongan Property vs. GuoChuang Software Co | Rongan Property vs. Zhongfu Information | Rongan Property vs. Biwin Storage Technology | Rongan Property vs. Dhc Software Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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