Correlation Between Sunny Loan and Xinjiang Tianshun
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By analyzing existing cross correlation between Sunny Loan Top and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Sunny Loan and Xinjiang Tianshun 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 Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Xinjiang Tianshun.
Diversification Opportunities for Sunny Loan and Xinjiang Tianshun
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sunny and Xinjiang is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Sunny Loan i.e., Sunny Loan and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Sunny Loan and Xinjiang Tianshun
Assuming the 90 days trading horizon Sunny Loan Top is expected to generate 1.4 times more return on investment than Xinjiang Tianshun. However, Sunny Loan is 1.4 times more volatile than Xinjiang Tianshun Supply. It trades about -0.16 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about -0.46 per unit of risk. If you would invest 1,140 in Sunny Loan Top on October 7, 2024 and sell it today you would lose (169.00) from holding Sunny Loan Top or give up 14.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Sunny Loan Top |
| Xinjiang Tianshun Supply |
Sunny Loan and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Xinjiang Tianshun
The main advantage of trading using opposite Sunny Loan and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan position performs unexpectedly, Xinjiang Tianshun 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 Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| Sunny Loan vs. Agricultural Bank of | Sunny Loan vs. Postal Savings Bank | Sunny Loan vs. Gansu Jiu Steel | Sunny Loan vs. Shandong Mining Machinery |
| Xinjiang Tianshun vs. Jinhui Mining Co | Xinjiang Tianshun vs. Iat Automobile Technology | Xinjiang Tianshun vs. Ningbo Fangzheng Automobile | Xinjiang Tianshun vs. Tianjin Silvery Dragon |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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