Correlation Between Anhui Xinhua and Xizi Clean
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By analyzing existing cross correlation between Anhui Xinhua Media and Xizi Clean Energy, you can compare the effects of market volatilities on Anhui Xinhua and Xizi Clean 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 Anhui Xinhua with a short position of Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Xizi Clean.
Diversification Opportunities for Anhui Xinhua and Xizi Clean
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Xizi is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy and Anhui Xinhua 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 Anhui Xinhua Media are associated (or correlated) with Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Anhui Xinhua i.e., Anhui Xinhua and Xizi Clean go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Xizi Clean
Assuming the 90 days trading horizon Anhui Xinhua Media is expected to under-perform the Xizi Clean. In addition to that, Anhui Xinhua is 1.01 times more volatile than Xizi Clean Energy. It trades about -0.02 of its total potential returns per unit of risk. Xizi Clean Energy is currently generating about 0.05 per unit of volatility. If you would invest 988.00 in Xizi Clean Energy on October 14, 2024 and sell it today you would earn a total of 210.00 from holding Xizi Clean Energy or generate 21.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Xinhua Media vs. Xizi Clean Energy
Performance |
| Timeline |
| Anhui Xinhua Media |
| Xizi Clean Energy |
Anhui Xinhua and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Xizi Clean
The main advantage of trading using opposite Anhui Xinhua and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Anhui Xinhua vs. Songz Automobile Air | Anhui Xinhua vs. Changchun Engley Automobile | Anhui Xinhua vs. Thinkingdom Media Group | Anhui Xinhua vs. Chengdu B ray Media |
| Xizi Clean vs. Anhui Xinhua Media | Xizi Clean vs. Pengxin International Mining | Xizi Clean vs. Omnijoi Media Corp | Xizi Clean vs. Guangdong Jingyi Metal |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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