Correlation Between Xinjiang Goldwind and Dalian Thermal
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By analyzing existing cross correlation between Xinjiang Goldwind Science and Dalian Thermal Power, you can compare the effects of market volatilities on Xinjiang Goldwind and Dalian Thermal 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 Xinjiang Goldwind with a short position of Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Goldwind and Dalian Thermal.
Diversification Opportunities for Xinjiang Goldwind and Dalian Thermal
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Dalian is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Goldwind Science and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power and Xinjiang Goldwind 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 Xinjiang Goldwind Science are associated (or correlated) with Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Xinjiang Goldwind i.e., Xinjiang Goldwind and Dalian Thermal go up and down completely randomly.
Pair Corralation between Xinjiang Goldwind and Dalian Thermal
Assuming the 90 days trading horizon Xinjiang Goldwind Science is expected to generate 0.7 times more return on investment than Dalian Thermal. However, Xinjiang Goldwind Science is 1.43 times less risky than Dalian Thermal. It trades about 0.13 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about 0.08 per unit of risk. If you would invest 875.00 in Xinjiang Goldwind Science on September 26, 2024 and sell it today you would earn a total of 215.00 from holding Xinjiang Goldwind Science or generate 24.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.33% |
Values | Daily Returns |
Xinjiang Goldwind Science vs. Dalian Thermal Power
Performance |
Timeline |
Xinjiang Goldwind Science |
Dalian Thermal Power |
Xinjiang Goldwind and Dalian Thermal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinjiang Goldwind and Dalian Thermal
The main advantage of trading using opposite Xinjiang Goldwind and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Goldwind position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal's long position.Xinjiang Goldwind vs. Dalian Thermal Power | Xinjiang Goldwind vs. Ningbo Thermal Power | Xinjiang Goldwind vs. Chengtun Mining Group | Xinjiang Goldwind vs. Hefei Metalforming Mach |
Dalian Thermal vs. Industrial and Commercial | Dalian Thermal vs. Agricultural Bank of | Dalian Thermal vs. China Construction Bank | Dalian Thermal vs. Bank of China |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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