Correlation Between Yantai North and Xinjiang Beixin
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By analyzing existing cross correlation between Yantai North Andre and Xinjiang Beixin RoadBridge, you can compare the effects of market volatilities on Yantai North and Xinjiang Beixin 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 Yantai North with a short position of Xinjiang Beixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Xinjiang Beixin.
Diversification Opportunities for Yantai North and Xinjiang Beixin
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yantai and Xinjiang is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre and Xinjiang Beixin RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Beixin Road and Yantai North 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 Yantai North Andre are associated (or correlated) with Xinjiang Beixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Beixin Road has no effect on the direction of Yantai North i.e., Yantai North and Xinjiang Beixin go up and down completely randomly.
Pair Corralation between Yantai North and Xinjiang Beixin
Assuming the 90 days trading horizon Yantai North is expected to generate 1.53 times less return on investment than Xinjiang Beixin. But when comparing it to its historical volatility, Yantai North Andre is 3.06 times less risky than Xinjiang Beixin. It trades about 0.52 of its potential returns per unit of risk. Xinjiang Beixin RoadBridge is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 344.00 in Xinjiang Beixin RoadBridge on December 6, 2024 and sell it today you would earn a total of 91.00 from holding Xinjiang Beixin RoadBridge or generate 26.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai North Andre vs. Xinjiang Beixin RoadBridge
Performance |
| Timeline |
| Yantai North Andre |
| Xinjiang Beixin Road |
Yantai North and Xinjiang Beixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Xinjiang Beixin
The main advantage of trading using opposite Yantai North and Xinjiang Beixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North position performs unexpectedly, Xinjiang Beixin 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 Beixin will offset losses from the drop in Xinjiang Beixin's long position.| Yantai North vs. Sportsoul Co Ltd | Yantai North vs. MayAir Technology Co | Yantai North vs. Shenzhen AV Display Co | Yantai North vs. Shanghai Yaoji Playing |
| Xinjiang Beixin vs. INKON Life Technology | Xinjiang Beixin vs. HUAQIN TECHNOLOGY LTD | Xinjiang Beixin vs. Montage Technology Co | Xinjiang Beixin vs. Xiangpiaopiao Food Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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