Correlation Between China Citic and Xinjiang Tianshun
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By analyzing existing cross correlation between China Citic Bank and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on China Citic and Xinjiang Tianshun 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 Citic with a short position of Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and Xinjiang Tianshun.
Diversification Opportunities for China Citic and Xinjiang Tianshun
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Xinjiang is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply and China Citic 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 Citic Bank are associated (or correlated) with Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of China Citic i.e., China Citic and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between China Citic and Xinjiang Tianshun
Assuming the 90 days trading horizon China Citic is expected to generate 1.98 times less return on investment than Xinjiang Tianshun. But when comparing it to its historical volatility, China Citic Bank is 1.55 times less risky than Xinjiang Tianshun. It trades about 0.15 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 911.00 in Xinjiang Tianshun Supply on September 12, 2024 and sell it today you would earn a total of 381.00 from holding Xinjiang Tianshun Supply or generate 41.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Citic Bank vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| China Citic Bank |
| Xinjiang Tianshun Supply |
China Citic and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and Xinjiang Tianshun
The main advantage of trading using opposite China Citic and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic position performs unexpectedly, Xinjiang Tianshun 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 Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| China Citic vs. China Asset Management | China Citic vs. Anhui Huaren Health | China Citic vs. Shenzhen Centralcon Investment | China Citic vs. BTG Hotels Group |
| Xinjiang Tianshun vs. Beijing SPC Environment | Xinjiang Tianshun vs. Hang Xiao Steel | Xinjiang Tianshun vs. King Strong New Material | Xinjiang Tianshun vs. Tianjin Capital Environmental |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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