Correlation Between Sichuan Teway and Xinjiang Communications
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By analyzing existing cross correlation between Sichuan Teway Food and Xinjiang Communications Construction, you can compare the effects of market volatilities on Sichuan Teway and Xinjiang Communications 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 Sichuan Teway with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Xinjiang Communications.
Diversification Opportunities for Sichuan Teway and Xinjiang Communications
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Xinjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and Sichuan Teway 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 Sichuan Teway Food are associated (or correlated) with Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Sichuan Teway i.e., Sichuan Teway and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Sichuan Teway and Xinjiang Communications
Assuming the 90 days trading horizon Sichuan Teway Food is expected to under-perform the Xinjiang Communications. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Teway Food is 1.06 times less risky than Xinjiang Communications. The stock trades about -0.03 of its potential returns per unit of risk. The Xinjiang Communications Construction is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,138 in Xinjiang Communications Construction on September 1, 2024 and sell it today you would earn a total of 142.00 from holding Xinjiang Communications Construction or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Sichuan Teway Food |
| Xinjiang Communications |
Sichuan Teway and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Xinjiang Communications
The main advantage of trading using opposite Sichuan Teway and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway position performs unexpectedly, Xinjiang Communications 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 Communications will offset losses from the drop in Xinjiang Communications' long position.| Sichuan Teway vs. Nanjing Putian Telecommunications | Sichuan Teway vs. Shenzhen Hifuture Electric | Sichuan Teway vs. Tianjin Realty Development | Sichuan Teway vs. Shenyang Huitian Thermal |
| Xinjiang Communications vs. Ming Yang Smart | Xinjiang Communications vs. 159681 | Xinjiang Communications vs. 159005 | Xinjiang Communications vs. Loctek Ergonomic Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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