Correlation Between Xinjiang Tianrun and Shantou Wanshun
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Shantou Wanshun Package, you can compare the effects of market volatilities on Xinjiang Tianrun and Shantou Wanshun 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 Shantou Wanshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Shantou Wanshun.
Diversification Opportunities for Xinjiang Tianrun and Shantou Wanshun
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Shantou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Shantou Wanshun Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantou Wanshun Package 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 Shantou Wanshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantou Wanshun Package has no effect on the direction of Xinjiang Tianrun i.e., Xinjiang Tianrun and Shantou Wanshun go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Shantou Wanshun
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to generate 0.68 times more return on investment than Shantou Wanshun. However, Xinjiang Tianrun Dairy is 1.47 times less risky than Shantou Wanshun. It trades about 0.21 of its potential returns per unit of risk. Shantou Wanshun Package is currently generating about 0.08 per unit of risk. If you would invest 849.00 in Xinjiang Tianrun Dairy on August 24, 2024 and sell it today you would earn a total of 93.00 from holding Xinjiang Tianrun Dairy or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Shantou Wanshun Package
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Shantou Wanshun Package |
Xinjiang Tianrun and Shantou Wanshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Shantou Wanshun
The main advantage of trading using opposite Xinjiang Tianrun and Shantou Wanshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun position performs unexpectedly, Shantou Wanshun 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 Shantou Wanshun will offset losses from the drop in Shantou Wanshun's long position.| Xinjiang Tianrun vs. Air China Ltd | Xinjiang Tianrun vs. Eastern Air Logistics | Xinjiang Tianrun vs. Xiamen Bank Co | Xinjiang Tianrun vs. Guangzhou Shangpin Home |
| Shantou Wanshun vs. Hainan Mining Co | Shantou Wanshun vs. Xinjiang Baodi Mining | Shantou Wanshun vs. Qingdao Foods Co | Shantou Wanshun vs. Xinjiang Tianrun Dairy |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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