Correlation Between Zhongtong Guomai and Xinjiang Tianshun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongtong Guomai Communication and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Xinjiang Tianshun.
Diversification Opportunities for Zhongtong Guomai and Xinjiang Tianshun
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Xinjiang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Xinjiang Tianshun
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.17 times more return on investment than Xinjiang Tianshun. However, Zhongtong Guomai is 1.17 times more volatile than Xinjiang Tianshun Supply. It trades about 0.05 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.02 per unit of risk. If you would invest 867.00 in Zhongtong Guomai Communication on September 4, 2024 and sell it today you would earn a total of 279.00 from holding Zhongtong Guomai Communication or generate 32.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Xinjiang Tianshun Supply |
Zhongtong Guomai and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Xinjiang Tianshun
The main advantage of trading using opposite Zhongtong Guomai and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Wuhan Xianglong Power | Zhongtong Guomai vs. Yuanjie Semiconductor Technology | Zhongtong Guomai vs. Kuang Chi Technologies | Zhongtong Guomai vs. Yunnan Bowin Technology |
| Xinjiang Tianshun vs. Zhongtong Guomai Communication | Xinjiang Tianshun vs. Guangzhou Haige Communications | Xinjiang Tianshun vs. MayAir Technology Co | Xinjiang Tianshun vs. Gome Telecom Equipment |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |