Correlation Between Changjiang Publishing and XinJiang GuoTong
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By analyzing existing cross correlation between Changjiang Publishing Media and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Changjiang Publishing 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 Changjiang Publishing with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Publishing and XinJiang GuoTong.
Diversification Opportunities for Changjiang Publishing and XinJiang GuoTong
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Changjiang and XinJiang is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Publishing Media 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 Changjiang Publishing 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 Changjiang Publishing Media 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 Changjiang Publishing i.e., Changjiang Publishing and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Changjiang Publishing and XinJiang GuoTong
Assuming the 90 days trading horizon Changjiang Publishing Media is expected to generate 0.65 times more return on investment than XinJiang GuoTong. However, Changjiang Publishing Media is 1.55 times less risky than XinJiang GuoTong. It trades about 0.07 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.01 per unit of risk. If you would invest 835.00 in Changjiang Publishing Media on August 31, 2024 and sell it today you would earn a total of 20.00 from holding Changjiang Publishing Media or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Publishing Media vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Changjiang Publishing |
| XinJiang GuoTong Pipeline |
Changjiang Publishing and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Publishing and XinJiang GuoTong
The main advantage of trading using opposite Changjiang Publishing and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Publishing 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.| Changjiang Publishing vs. BYD Co Ltd | Changjiang Publishing vs. Agricultural Bank of | Changjiang Publishing vs. Industrial and Commercial | Changjiang Publishing vs. China State Construction |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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