Correlation Between Xinjiang Tianrun and Wanda Cinema
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Wanda Cinema Line, you can compare the effects of market volatilities on Xinjiang Tianrun and Wanda Cinema 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 Wanda Cinema. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Wanda Cinema.
Diversification Opportunities for Xinjiang Tianrun and Wanda Cinema
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Wanda is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Wanda Cinema Line in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanda Cinema Line 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 Wanda Cinema. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanda Cinema Line has no effect on the direction of Xinjiang Tianrun i.e., Xinjiang Tianrun and Wanda Cinema go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Wanda Cinema
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Wanda Cinema. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.19 times less risky than Wanda Cinema. The stock trades about -0.04 of its potential returns per unit of risk. The Wanda Cinema Line is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,290 in Wanda Cinema Line on December 4, 2024 and sell it today you would lose (184.00) from holding Wanda Cinema Line or give up 14.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.16% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Wanda Cinema Line
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Wanda Cinema Line |
Xinjiang Tianrun and Wanda Cinema Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Wanda Cinema
The main advantage of trading using opposite Xinjiang Tianrun and Wanda Cinema positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun position performs unexpectedly, Wanda Cinema 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 Wanda Cinema will offset losses from the drop in Wanda Cinema's long position.| Xinjiang Tianrun vs. Shenzhen SDG Information | Xinjiang Tianrun vs. Wintao Communications Co | Xinjiang Tianrun vs. Aba Chemicals Corp | Xinjiang Tianrun vs. SI TECH Information Technology |
| Wanda Cinema vs. Guangdong Jingyi Metal | Wanda Cinema vs. Rongcheer Industrial Technology | Wanda Cinema vs. Chengtun Mining Group | Wanda Cinema vs. Rising Nonferrous Metals |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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