Correlation Between RoadMain T and XinJiang GuoTong
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By analyzing existing cross correlation between RoadMain T Co and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on RoadMain T and XinJiang GuoTong 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 RoadMain T with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of RoadMain T and XinJiang GuoTong.
Diversification Opportunities for RoadMain T and XinJiang GuoTong
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RoadMain and XinJiang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding RoadMain T Co and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and RoadMain T 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 RoadMain T Co are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of RoadMain T i.e., RoadMain T and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between RoadMain T and XinJiang GuoTong
Assuming the 90 days trading horizon RoadMain T is expected to generate 4.21 times less return on investment than XinJiang GuoTong. But when comparing it to its historical volatility, RoadMain T Co is 1.56 times less risky than XinJiang GuoTong. It trades about 0.09 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 833.00 in XinJiang GuoTong Pipeline on November 29, 2024 and sell it today you would earn a total of 94.00 from holding XinJiang GuoTong Pipeline or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
RoadMain T Co vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| RoadMain T |
| XinJiang GuoTong Pipeline |
RoadMain T and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RoadMain T and XinJiang GuoTong
The main advantage of trading using opposite RoadMain T and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoadMain T position performs unexpectedly, XinJiang GuoTong 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 GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| RoadMain T vs. Camelot Electronics Technology | RoadMain T vs. YiDong Electronics Technology | RoadMain T vs. Nantong Haixing Electronics | RoadMain T vs. Jiangxi Lianchuang Opto electronic |
| XinJiang GuoTong vs. Biwin Storage Technology | XinJiang GuoTong vs. Longjian Road Bridge | XinJiang GuoTong vs. Hygon Information Technology | XinJiang GuoTong vs. Highbroad Advanced Material |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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