Correlation Between Chengdu B-ray and Xinjiang Tianrun
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By analyzing existing cross correlation between Chengdu B ray Media and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Chengdu B-ray 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 Chengdu B-ray with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B-ray and Xinjiang Tianrun.
Diversification Opportunities for Chengdu B-ray and Xinjiang Tianrun
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 Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy and Chengdu B-ray 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 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 Chengdu B-ray i.e., Chengdu B-ray and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Chengdu B-ray and Xinjiang Tianrun
Assuming the 90 days trading horizon Chengdu B ray Media is expected to generate 0.88 times more return on investment than Xinjiang Tianrun. However, Chengdu B ray Media is 1.13 times less risky than Xinjiang Tianrun. It trades about -0.06 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.18 per unit of risk. If you would invest 467.00 in Chengdu B ray Media on November 3, 2024 and sell it today you would lose (18.00) from holding Chengdu B ray Media or give up 3.85% of portfolio value 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 Tianrun Dairy
Performance |
| Timeline |
| Chengdu B ray |
| Xinjiang Tianrun Dairy |
Chengdu B-ray and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B-ray and Xinjiang Tianrun
The main advantage of trading using opposite Chengdu B-ray and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B-ray 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.| Chengdu B-ray vs. Guangdong Sunwill Precising | Chengdu B-ray vs. Shengda Mining Co | Chengdu B-ray vs. Jilin OLED Material | Chengdu B-ray vs. Malion New Materials |
| Xinjiang Tianrun vs. Chengtun Mining Group | Xinjiang Tianrun vs. Guangdong Silvere Sci | Xinjiang Tianrun vs. China Aluminum International | Xinjiang Tianrun vs. Chenzhou Jingui Silver |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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