Correlation Between Sunny Loan and Xinjiang Zhongtai
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By analyzing existing cross correlation between Sunny Loan Top and Xinjiang Zhongtai Chemical, you can compare the effects of market volatilities on Sunny Loan and Xinjiang Zhongtai 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 Sunny Loan with a short position of Xinjiang Zhongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Xinjiang Zhongtai.
Diversification Opportunities for Sunny Loan and Xinjiang Zhongtai
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and Xinjiang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Xinjiang Zhongtai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Zhongtai and Sunny Loan 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 Sunny Loan Top are associated (or correlated) with Xinjiang Zhongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Zhongtai has no effect on the direction of Sunny Loan i.e., Sunny Loan and Xinjiang Zhongtai go up and down completely randomly.
Pair Corralation between Sunny Loan and Xinjiang Zhongtai
Assuming the 90 days trading horizon Sunny Loan Top is expected to under-perform the Xinjiang Zhongtai. In addition to that, Sunny Loan is 1.31 times more volatile than Xinjiang Zhongtai Chemical. It trades about -0.01 of its total potential returns per unit of risk. Xinjiang Zhongtai Chemical is currently generating about 0.16 per unit of volatility. If you would invest 438.00 in Xinjiang Zhongtai Chemical on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Xinjiang Zhongtai Chemical or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Xinjiang Zhongtai Chemical
Performance |
| Timeline |
| Sunny Loan Top |
| Xinjiang Zhongtai |
Sunny Loan and Xinjiang Zhongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Xinjiang Zhongtai
The main advantage of trading using opposite Sunny Loan and Xinjiang Zhongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan position performs unexpectedly, Xinjiang Zhongtai 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 Zhongtai will offset losses from the drop in Xinjiang Zhongtai's long position.| Sunny Loan vs. Kweichow Moutai Co | Sunny Loan vs. Contemporary Amperex Technology | Sunny Loan vs. G bits Network Technology | Sunny Loan vs. BYD Co Ltd |
| Xinjiang Zhongtai vs. Heilongjiang Transport Development | Xinjiang Zhongtai vs. Harbin Hatou Investment | Xinjiang Zhongtai vs. Kunwu Jiuding Investment | Xinjiang Zhongtai vs. Xinjiang Beixin RoadBridge |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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