Correlation Between Industrial and Xinjiang Tianrun
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By analyzing existing cross correlation between Industrial and Commercial and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Industrial and Xinjiang Tianrun 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 Industrial with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Xinjiang Tianrun.
Diversification Opportunities for Industrial and Xinjiang Tianrun
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Xinjiang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy and Industrial 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 Industrial and Commercial are associated (or correlated) with Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Industrial i.e., Industrial and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Industrial and Xinjiang Tianrun
Assuming the 90 days trading horizon Industrial is expected to generate 1.25 times less return on investment than Xinjiang Tianrun. But when comparing it to its historical volatility, Industrial and Commercial is 2.47 times less risky than Xinjiang Tianrun. It trades about 0.24 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 996.00 in Xinjiang Tianrun Dairy on September 13, 2024 and sell it today you would earn a total of 60.00 from holding Xinjiang Tianrun Dairy or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Industrial and Commercial |
| Xinjiang Tianrun Dairy |
Industrial and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Xinjiang Tianrun
The main advantage of trading using opposite Industrial and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Xinjiang Tianrun 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 Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Industrial vs. Pengxin International Mining | Industrial vs. Qilu Bank Co | Industrial vs. Tibet Huayu Mining | Industrial vs. Chengtun Mining Group |
| Xinjiang Tianrun vs. Agricultural Bank of | Xinjiang Tianrun vs. Industrial and Commercial | Xinjiang Tianrun vs. Bank of China | Xinjiang Tianrun 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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