Correlation Between Chengdu B and Xinjiang Communications
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By analyzing existing cross correlation between Chengdu B ray Media and Xinjiang Communications Construction, you can compare the effects of market volatilities on Chengdu B and Xinjiang Communications 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 Chengdu B with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Xinjiang Communications.
Diversification Opportunities for Chengdu B and Xinjiang Communications
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Xinjiang is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and Chengdu B 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 Chengdu B ray Media are associated (or correlated) with Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Chengdu B i.e., Chengdu B and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Chengdu B and Xinjiang Communications
Assuming the 90 days trading horizon Chengdu B is expected to generate 3.96 times less return on investment than Xinjiang Communications. In addition to that, Chengdu B is 1.0 times more volatile than Xinjiang Communications Construction. It trades about 0.0 of its total potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.02 per unit of volatility. If you would invest 1,196 in Xinjiang Communications Construction on September 26, 2024 and sell it today you would earn a total of 45.00 from holding Xinjiang Communications Construction or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Chengdu B ray |
| Xinjiang Communications |
Chengdu B and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Xinjiang Communications
The main advantage of trading using opposite Chengdu B and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, Xinjiang Communications 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 Communications will offset losses from the drop in Xinjiang Communications' long position.| Chengdu B vs. PetroChina Co Ltd | Chengdu B vs. China Mobile Limited | Chengdu B vs. CNOOC Limited | Chengdu B vs. Ping An Insurance |
| Xinjiang Communications vs. China Publishing Media | Xinjiang Communications vs. Chengdu B ray Media | Xinjiang Communications vs. Sportsoul Co Ltd | Xinjiang Communications vs. Ziel Home Furnishing |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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