Correlation Between Zhongtong Guomai and Xinjiang Communications
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Xinjiang Communications Construction, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Xinjiang Communications.
Diversification Opportunities for Zhongtong Guomai and Xinjiang Communications
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Xinjiang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 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 Zhongtong Guomai i.e., Zhongtong Guomai and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Xinjiang Communications
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.08 times more return on investment than Xinjiang Communications. However, Zhongtong Guomai is 1.08 times more volatile than Xinjiang Communications Construction. It trades about 0.41 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.23 per unit of risk. If you would invest 691.00 in Zhongtong Guomai Communication on December 1, 2024 and sell it today you would earn a total of 153.00 from holding Zhongtong Guomai Communication or generate 22.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Xinjiang Communications |
Zhongtong Guomai and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Xinjiang Communications
The main advantage of trading using opposite Zhongtong Guomai and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Ziel Home Furnishing | Zhongtong Guomai vs. Shanghai Ziyan Foods | Zhongtong Guomai vs. Jahen Household Products | Zhongtong Guomai vs. Markor International Home |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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