Correlation Between Gem Year and Xinjiang Beixin
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By analyzing existing cross correlation between Gem Year Industrial Co and Xinjiang Beixin RoadBridge, you can compare the effects of market volatilities on Gem Year and Xinjiang Beixin 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 Gem Year with a short position of Xinjiang Beixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Xinjiang Beixin.
Diversification Opportunities for Gem Year and Xinjiang Beixin
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gem and Xinjiang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Xinjiang Beixin RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Beixin Road and Gem Year 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 Gem Year Industrial Co are associated (or correlated) with Xinjiang Beixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Beixin Road has no effect on the direction of Gem Year i.e., Gem Year and Xinjiang Beixin go up and down completely randomly.
Pair Corralation between Gem Year and Xinjiang Beixin
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 0.56 times more return on investment than Xinjiang Beixin. However, Gem Year Industrial Co is 1.8 times less risky than Xinjiang Beixin. It trades about -0.05 of its potential returns per unit of risk. Xinjiang Beixin RoadBridge is currently generating about -0.1 per unit of risk. If you would invest 455.00 in Gem Year Industrial Co on October 18, 2024 and sell it today you would lose (13.00) from holding Gem Year Industrial Co or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Xinjiang Beixin RoadBridge
Performance |
| Timeline |
| Gem Year Industrial |
| Xinjiang Beixin Road |
Gem Year and Xinjiang Beixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Xinjiang Beixin
The main advantage of trading using opposite Gem Year and Xinjiang Beixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, Xinjiang Beixin 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 Beixin will offset losses from the drop in Xinjiang Beixin's long position.| Gem Year vs. Anhui Deli Household | Gem Year vs. Haima Automobile Group | Gem Year vs. Quectel Wireless Solutions | Gem Year vs. Guangdong Shenglu Telecommunication |
| Xinjiang Beixin vs. AVIC Fund Management | Xinjiang Beixin vs. CICC Fund Management | Xinjiang Beixin vs. Sichuan Yahua Industrial | Xinjiang Beixin vs. Gem Year Industrial Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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