Correlation Between New China and Xian Sunresin
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By analyzing existing cross correlation between New China Life and Xian Sunresin New, you can compare the effects of market volatilities on New China and Xian Sunresin 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 New China with a short position of Xian Sunresin. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and Xian Sunresin.
Diversification Opportunities for New China and Xian Sunresin
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between New and Xian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and Xian Sunresin New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian Sunresin New and New China 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 New China Life are associated (or correlated) with Xian Sunresin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian Sunresin New has no effect on the direction of New China i.e., New China and Xian Sunresin go up and down completely randomly.
Pair Corralation between New China and Xian Sunresin
Assuming the 90 days trading horizon New China Life is expected to generate 0.84 times more return on investment than Xian Sunresin. However, New China Life is 1.2 times less risky than Xian Sunresin. It trades about 0.06 of its potential returns per unit of risk. Xian Sunresin New is currently generating about 0.02 per unit of risk. If you would invest 2,862 in New China Life on September 3, 2024 and sell it today you would earn a total of 1,874 from holding New China Life or generate 65.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
New China Life vs. Xian Sunresin New
Performance |
| Timeline |
| New China Life |
| Xian Sunresin New |
New China and Xian Sunresin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and Xian Sunresin
The main advantage of trading using opposite New China and Xian Sunresin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China position performs unexpectedly, Xian Sunresin 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 Xian Sunresin will offset losses from the drop in Xian Sunresin's long position.| New China vs. Dongguan Tarry Electronics | New China vs. TongFu Microelectronics Co | New China vs. Tibet Huayu Mining | New China vs. JCHX Mining Management |
| Xian Sunresin vs. Zijin Mining Group | Xian Sunresin vs. Guocheng Mining Co | Xian Sunresin vs. Zhengzhou Qianweiyangchu Food | Xian Sunresin vs. Tianjin Silvery Dragon |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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