Correlation Between Bank of XiAn and Xinjiang Communications
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By analyzing existing cross correlation between Bank of XiAn and Xinjiang Communications Construction, you can compare the effects of market volatilities on Bank of XiAn 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 Bank of XiAn with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of XiAn and Xinjiang Communications.
Diversification Opportunities for Bank of XiAn and Xinjiang Communications
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and Xinjiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Bank of XiAn and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and Bank of XiAn 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 Bank of XiAn 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 Bank of XiAn i.e., Bank of XiAn and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Bank of XiAn and Xinjiang Communications
Assuming the 90 days trading horizon Bank of XiAn is expected to generate 0.52 times more return on investment than Xinjiang Communications. However, Bank of XiAn is 1.91 times less risky than Xinjiang Communications. It trades about 0.02 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.0 per unit of risk. If you would invest 358.00 in Bank of XiAn on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Bank of XiAn or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.71% |
| Values | Daily Returns |
Bank of XiAn vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Bank of XiAn |
| Xinjiang Communications |
Bank of XiAn and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of XiAn and Xinjiang Communications
The main advantage of trading using opposite Bank of XiAn and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of XiAn 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.| Bank of XiAn vs. Hang Xiao Steel | Bank of XiAn vs. Heilongjiang Transport Development | Bank of XiAn vs. Sino Platinum Metals Co | Bank of XiAn vs. Jiaozuo Wanfang Aluminum |
| Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. PetroChina Co Ltd |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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