Correlation Between Longjian Road and Xizi Clean
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By analyzing existing cross correlation between Longjian Road Bridge and Xizi Clean Energy, you can compare the effects of market volatilities on Longjian Road and Xizi Clean 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 Longjian Road with a short position of Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longjian Road and Xizi Clean.
Diversification Opportunities for Longjian Road and Xizi Clean
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Longjian and Xizi is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Longjian Road Bridge and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy and Longjian Road 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 Longjian Road Bridge are associated (or correlated) with Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Longjian Road i.e., Longjian Road and Xizi Clean go up and down completely randomly.
Pair Corralation between Longjian Road and Xizi Clean
Assuming the 90 days trading horizon Longjian Road is expected to generate 7.04 times less return on investment than Xizi Clean. But when comparing it to its historical volatility, Longjian Road Bridge is 1.22 times less risky than Xizi Clean. It trades about 0.01 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,042 in Xizi Clean Energy on August 25, 2024 and sell it today you would earn a total of 118.00 from holding Xizi Clean Energy or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longjian Road Bridge vs. Xizi Clean Energy
Performance |
| Timeline |
| Longjian Road Bridge |
| Xizi Clean Energy |
Longjian Road and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longjian Road and Xizi Clean
The main advantage of trading using opposite Longjian Road and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longjian Road position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Longjian Road vs. Ming Yang Smart | Longjian Road vs. 159681 | Longjian Road vs. 159005 | Longjian Road vs. Loctek Ergonomic Technology |
| Xizi Clean vs. Biwin Storage Technology | Xizi Clean vs. PetroChina Co Ltd | Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. China Construction Bank |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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