Correlation Between XRP and Yunnan Chuangxin
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By analyzing existing cross correlation between XRP and Yunnan Chuangxin New, you can compare the effects of market volatilities on XRP and Yunnan Chuangxin 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 XRP with a short position of Yunnan Chuangxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of XRP and Yunnan Chuangxin.
Diversification Opportunities for XRP and Yunnan Chuangxin
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between XRP and Yunnan is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding XRP and Yunnan Chuangxin New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Chuangxin New and XRP 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 XRP are associated (or correlated) with Yunnan Chuangxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Chuangxin New has no effect on the direction of XRP i.e., XRP and Yunnan Chuangxin go up and down completely randomly.
Pair Corralation between XRP and Yunnan Chuangxin
Assuming the 90 days trading horizon XRP is expected to generate 3.63 times more return on investment than Yunnan Chuangxin. However, XRP is 3.63 times more volatile than Yunnan Chuangxin New. It trades about 0.09 of its potential returns per unit of risk. Yunnan Chuangxin New is currently generating about -0.59 per unit of risk. If you would invest 240.00 in XRP on October 14, 2024 and sell it today you would earn a total of 18.00 from holding XRP or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XRP vs. Yunnan Chuangxin New
Performance |
| Timeline |
| XRP |
| Yunnan Chuangxin New |
XRP and Yunnan Chuangxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XRP and Yunnan Chuangxin
The main advantage of trading using opposite XRP and Yunnan Chuangxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XRP position performs unexpectedly, Yunnan Chuangxin 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 Yunnan Chuangxin will offset losses from the drop in Yunnan Chuangxin's long position.The idea behind XRP and Yunnan Chuangxin New pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Yunnan Chuangxin vs. Pengxin International Mining | Yunnan Chuangxin vs. Zhengzhou Coal Mining | Yunnan Chuangxin vs. Xinhua Winshare Publishing | Yunnan Chuangxin vs. Changjiang Publishing Media |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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