Correlation Between Xingguang Agricultural and Zhengping RoadBridge
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By analyzing existing cross correlation between Xingguang Agricultural Mach and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Xingguang Agricultural and Zhengping RoadBridge 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 Xingguang Agricultural with a short position of Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xingguang Agricultural and Zhengping RoadBridge.
Diversification Opportunities for Xingguang Agricultural and Zhengping RoadBridge
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xingguang and Zhengping is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Xingguang Agricultural Mach and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge and Xingguang Agricultural 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 Xingguang Agricultural Mach are associated (or correlated) with Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Xingguang Agricultural i.e., Xingguang Agricultural and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Xingguang Agricultural and Zhengping RoadBridge
Assuming the 90 days trading horizon Xingguang Agricultural is expected to generate 8.5 times less return on investment than Zhengping RoadBridge. But when comparing it to its historical volatility, Xingguang Agricultural Mach is 1.19 times less risky than Zhengping RoadBridge. It trades about 0.02 of its potential returns per unit of risk. Zhengping RoadBridge Constr is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 280.00 in Zhengping RoadBridge Constr on October 14, 2024 and sell it today you would earn a total of 86.00 from holding Zhengping RoadBridge Constr or generate 30.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xingguang Agricultural Mach vs. Zhengping RoadBridge Constr
Performance |
| Timeline |
| Xingguang Agricultural |
| Zhengping RoadBridge |
Xingguang Agricultural and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xingguang Agricultural and Zhengping RoadBridge
The main advantage of trading using opposite Xingguang Agricultural and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xingguang Agricultural position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.| Xingguang Agricultural vs. Tianjin Silvery Dragon | Xingguang Agricultural vs. Kuang Chi Technologies | Xingguang Agricultural vs. Uroica Mining Safety | Xingguang Agricultural vs. Unisplendour Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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