Correlation Between Caihong Display and XinJiang GuoTong
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By analyzing existing cross correlation between Caihong Display Devices and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Caihong Display and XinJiang GuoTong 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 Caihong Display with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and XinJiang GuoTong.
Diversification Opportunities for Caihong Display and XinJiang GuoTong
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Caihong and XinJiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Caihong Display 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 Caihong Display Devices are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Caihong Display i.e., Caihong Display and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Caihong Display and XinJiang GuoTong
Assuming the 90 days trading horizon Caihong Display Devices is expected to under-perform the XinJiang GuoTong. But the stock apears to be less risky and, when comparing its historical volatility, Caihong Display Devices is 1.11 times less risky than XinJiang GuoTong. The stock trades about -0.08 of its potential returns per unit of risk. The XinJiang GuoTong Pipeline is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 871.00 in XinJiang GuoTong Pipeline on September 3, 2024 and sell it today you would earn a total of 35.00 from holding XinJiang GuoTong Pipeline or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Caihong Display Devices |
| XinJiang GuoTong Pipeline |
Caihong Display and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and XinJiang GuoTong
The main advantage of trading using opposite Caihong Display and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Caihong Display vs. Agricultural Bank of | Caihong Display vs. China Construction Bank | Caihong Display vs. Postal Savings Bank | Caihong Display vs. Bank of Communications |
| XinJiang GuoTong vs. Iat Automobile Technology | XinJiang GuoTong vs. Sinomach Automobile Co | XinJiang GuoTong vs. Guangzhou Automobile Group | XinJiang GuoTong vs. Ningxia Younglight Chemicals |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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