Correlation Between Xinjiang Tianrun and Shenzhen Fortune
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Shenzhen Fortune Trend, you can compare the effects of market volatilities on Xinjiang Tianrun and Shenzhen Fortune 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 Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Shenzhen Fortune.
Diversification Opportunities for Xinjiang Tianrun and Shenzhen Fortune
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Shenzhen is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy and Shenzhen Fortune Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fortune Trend 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 Shenzhen Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fortune Trend has no effect on the direction of Xinjiang Tianrun i.e., Xinjiang Tianrun and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Shenzhen Fortune
Assuming the 90 days trading horizon Xinjiang Tianrun Dairy is expected to generate 0.71 times more return on investment than Shenzhen Fortune. However, Xinjiang Tianrun Dairy is 1.41 times less risky than Shenzhen Fortune. It trades about -0.16 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about -0.18 per unit of risk. If you would invest 976.00 in Xinjiang Tianrun Dairy on October 20, 2024 and sell it today you would lose (89.00) from holding Xinjiang Tianrun Dairy or give up 9.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Shenzhen Fortune Trend |
Xinjiang Tianrun and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Shenzhen Fortune
The main advantage of trading using opposite Xinjiang Tianrun and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun position performs unexpectedly, Shenzhen Fortune 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 Shenzhen Fortune will offset losses from the drop in Shenzhen Fortune's long position.| Xinjiang Tianrun vs. Fibocom Wireless | Xinjiang Tianrun vs. Xiangyang Automobile Bearing | Xinjiang Tianrun vs. Integrated Electronic Systems | Xinjiang Tianrun vs. Shijiazhuang Tonhe Electronics |
| Shenzhen Fortune vs. Kweichow Moutai Co | Shenzhen Fortune vs. NAURA Technology Group | Shenzhen Fortune vs. Zhejiang Orient Gene | Shenzhen Fortune vs. APT Medical |
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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