Correlation Between China State and Xinjiang Tianrun
Specify exactly 2 symbols:
By analyzing existing cross correlation between China State Construction and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on China State 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 China State with a short position of Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Xinjiang Tianrun.
Diversification Opportunities for China State and Xinjiang Tianrun
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Xinjiang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 China State 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 China State Construction 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 China State i.e., China State and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between China State and Xinjiang Tianrun
Assuming the 90 days trading horizon China State Construction is expected to generate 0.85 times more return on investment than Xinjiang Tianrun. However, China State Construction is 1.17 times less risky than Xinjiang Tianrun. It trades about 0.02 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.03 per unit of risk. If you would invest 537.00 in China State Construction on September 5, 2024 and sell it today you would earn a total of 72.00 from holding China State Construction or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| China State Construction |
| Xinjiang Tianrun Dairy |
China State and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Xinjiang Tianrun
The main advantage of trading using opposite China State and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. HaiXin Foods Co | China State vs. Zhejiang Yayi Metal | China State vs. V V Food | China State vs. Youyou Foods Co |
| Xinjiang Tianrun vs. China Petroleum Chemical | Xinjiang Tianrun vs. PetroChina Co Ltd | Xinjiang Tianrun vs. China State Construction | Xinjiang Tianrun vs. China Railway Group |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |