Correlation Between Dongxing Sec and Xinjiang Communications
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By analyzing existing cross correlation between Dongxing Sec Co and Xinjiang Communications Construction, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Xinjiang Communications.
Diversification Opportunities for Dongxing Sec and Xinjiang Communications
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongxing and Xinjiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and Dongxing Sec 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 Dongxing Sec Co 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 Dongxing Sec i.e., Dongxing Sec and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Dongxing Sec and Xinjiang Communications
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 1.13 times more return on investment than Xinjiang Communications. However, Dongxing Sec is 1.13 times more volatile than Xinjiang Communications Construction. It trades about 0.18 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.18 per unit of risk. If you would invest 796.00 in Dongxing Sec Co on September 4, 2024 and sell it today you would earn a total of 354.00 from holding Dongxing Sec Co or generate 44.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Dongxing Sec |
| Xinjiang Communications |
Dongxing Sec and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Xinjiang Communications
The main advantage of trading using opposite Dongxing Sec and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Rising Nonferrous Metals | Dongxing Sec vs. Ye Chiu Metal | Dongxing Sec vs. Guangdong Jingyi Metal | Dongxing Sec vs. GRINM Semiconductor Materials |
| Xinjiang Communications vs. China Life Insurance | Xinjiang Communications vs. Cinda Securities Co | Xinjiang Communications vs. Piotech Inc A | Xinjiang Communications vs. Dongxing Sec 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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