Correlation Between Xinjiang Tianrun and Soyea Technology
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Soyea Technology Co, you can compare the effects of market volatilities on Xinjiang Tianrun and Soyea Technology 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 Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Soyea Technology.
Diversification Opportunities for Xinjiang Tianrun and Soyea Technology
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Soyea is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology 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 Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of Xinjiang Tianrun i.e., Xinjiang Tianrun and Soyea Technology go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Soyea Technology
Assuming the 90 days trading horizon Xinjiang Tianrun is expected to generate 1.99 times less return on investment than Soyea Technology. But when comparing it to its historical volatility, Xinjiang Tianrun Dairy is 1.04 times less risky than Soyea Technology. It trades about 0.06 of its potential returns per unit of risk. Soyea Technology Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 365.00 in Soyea Technology Co on October 18, 2024 and sell it today you would earn a total of 149.00 from holding Soyea Technology Co or generate 40.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.17% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Soyea Technology Co
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Soyea Technology |
Xinjiang Tianrun and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Soyea Technology
The main advantage of trading using opposite Xinjiang Tianrun and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| Xinjiang Tianrun vs. Bosera CMSK Industrial | Xinjiang Tianrun vs. Eyebright Medical Technology | Xinjiang Tianrun vs. Rising Nonferrous Metals | Xinjiang Tianrun vs. Zhengzhou Coal Mining |
| Soyea Technology vs. Anji Foodstuff Co | Soyea Technology vs. Xinjiang Tianrun Dairy | Soyea Technology vs. Jinsanjiang Silicon Material | Soyea Technology vs. NBTM New Materials |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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