Correlation Between Shanghai Xinhua and Xinjiang Tianrun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Xinhua Media and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Shanghai Xinhua and Xinjiang Tianrun 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 Shanghai Xinhua with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Xinhua and Xinjiang Tianrun.
Diversification Opportunities for Shanghai Xinhua and Xinjiang Tianrun
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Xinjiang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Xinhua Media and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy and Shanghai Xinhua 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 Shanghai Xinhua Media are associated (or correlated) with Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Shanghai Xinhua i.e., Shanghai Xinhua and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Shanghai Xinhua and Xinjiang Tianrun
Assuming the 90 days trading horizon Shanghai Xinhua Media is expected to generate 1.54 times more return on investment than Xinjiang Tianrun. However, Shanghai Xinhua is 1.54 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.06 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.02 per unit of risk. If you would invest 423.00 in Shanghai Xinhua Media on November 7, 2024 and sell it today you would earn a total of 168.00 from holding Shanghai Xinhua Media or generate 39.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Xinhua Media vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Shanghai Xinhua Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Xinjiang Tianrun Dairy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shanghai Xinhua and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Xinhua and Xinjiang Tianrun
The main advantage of trading using opposite Shanghai Xinhua and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Xinhua position performs unexpectedly, Xinjiang Tianrun 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 Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.The idea behind Shanghai Xinhua Media and Xinjiang Tianrun Dairy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |