Correlation Between Xinjiang Tianrun and Suzhou Xingye
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Suzhou Xingye Material, you can compare the effects of market volatilities on Xinjiang Tianrun and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Suzhou Xingye.
Diversification Opportunities for Xinjiang Tianrun and Suzhou Xingye
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Suzhou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Xinjiang Tianrun i.e., Xinjiang Tianrun and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Suzhou Xingye
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to under-perform the Suzhou Xingye. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Tianrun Dairy is 1.32 times less risky than Suzhou Xingye. The stock trades about -0.05 of its potential returns per unit of risk. The Suzhou Xingye Material is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,151 in Suzhou Xingye Material on October 16, 2024 and sell it today you would lose (348.00) from holding Suzhou Xingye Material or give up 30.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Suzhou Xingye Material
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Suzhou Xingye Material |
Xinjiang Tianrun and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Suzhou Xingye
The main advantage of trading using opposite Xinjiang Tianrun and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Xinjiang Tianrun vs. Henan Shuanghui Investment | Xinjiang Tianrun vs. Hunan Investment Group | Xinjiang Tianrun vs. Harbin Hatou Investment | Xinjiang Tianrun vs. Shandong Polymer Biochemicals |
| Suzhou Xingye vs. Inspur Software Co | Suzhou Xingye vs. Shandong Hi Speed RoadBridge | Suzhou Xingye vs. Shaanxi Broadcast TV | Suzhou Xingye vs. Hangzhou Pinming Software |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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