Correlation Between Tangshan Port and Xinya Electronic
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By analyzing existing cross correlation between Tangshan Port Group and Xinya Electronic Co, you can compare the effects of market volatilities on Tangshan Port and Xinya Electronic 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 Tangshan Port with a short position of Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangshan Port and Xinya Electronic.
Diversification Opportunities for Tangshan Port and Xinya Electronic
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tangshan and Xinya is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Tangshan Port Group and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic and Tangshan Port 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 Tangshan Port Group are associated (or correlated) with Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Tangshan Port i.e., Tangshan Port and Xinya Electronic go up and down completely randomly.
Pair Corralation between Tangshan Port and Xinya Electronic
Assuming the 90 days trading horizon Tangshan Port Group is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Tangshan Port Group is 1.78 times less risky than Xinya Electronic. The stock trades about -0.05 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,232 in Xinya Electronic Co on November 3, 2024 and sell it today you would earn a total of 563.00 from holding Xinya Electronic Co or generate 45.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tangshan Port Group vs. Xinya Electronic Co
Performance |
| Timeline |
| Tangshan Port Group |
| Xinya Electronic |
Tangshan Port and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangshan Port and Xinya Electronic
The main advantage of trading using opposite Tangshan Port and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangshan Port position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Tangshan Port vs. Hongrun Construction Group | Tangshan Port vs. SSAW Hotels Resorts | Tangshan Port vs. Allied Machinery Co | Tangshan Port vs. Shantui Construction Machinery |
| Xinya Electronic vs. Suzhou Douson Drilling | Xinya Electronic vs. Capitalonline Data Service | Xinya Electronic vs. Jiugui Liquor Co | Xinya Electronic vs. Hubei Geoway Investment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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