Correlation Between Xinjiang Tianrun and Chenzhou Jingui
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Chenzhou Jingui Silver, you can compare the effects of market volatilities on Xinjiang Tianrun and Chenzhou Jingui 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 Chenzhou Jingui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Chenzhou Jingui.
Diversification Opportunities for Xinjiang Tianrun and Chenzhou Jingui
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Chenzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Chenzhou Jingui Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenzhou Jingui Silver 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 Chenzhou Jingui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenzhou Jingui Silver has no effect on the direction of Xinjiang Tianrun i.e., Xinjiang Tianrun and Chenzhou Jingui go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Chenzhou Jingui
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Chenzhou Jingui. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.43 times less risky than Chenzhou Jingui. The stock trades about -0.04 of its potential returns per unit of risk. The Chenzhou Jingui Silver is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 284.00 in Chenzhou Jingui Silver on September 12, 2024 and sell it today you would earn a total of 103.00 from holding Chenzhou Jingui Silver or generate 36.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Chenzhou Jingui Silver
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Chenzhou Jingui Silver |
Xinjiang Tianrun and Chenzhou Jingui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Chenzhou Jingui
The main advantage of trading using opposite Xinjiang Tianrun and Chenzhou Jingui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun position performs unexpectedly, Chenzhou Jingui 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 Chenzhou Jingui will offset losses from the drop in Chenzhou Jingui's long position.| Xinjiang Tianrun vs. China Petroleum Chemical | Xinjiang Tianrun vs. PetroChina Co Ltd | Xinjiang Tianrun vs. China State Construction | Xinjiang Tianrun vs. China Railway Group |
| Chenzhou Jingui vs. Zijin Mining Group | Chenzhou Jingui vs. Wanhua Chemical Group | Chenzhou Jingui vs. Baoshan Iron Steel | Chenzhou Jingui vs. Rongsheng Petrochemical 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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