Correlation Between XinJiang GuoTong and Guangzhou Haige
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Guangzhou Haige Communications, you can compare the effects of market volatilities on XinJiang GuoTong and Guangzhou Haige 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 GuoTong with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Guangzhou Haige.
Diversification Opportunities for XinJiang GuoTong and Guangzhou Haige
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between XinJiang and Guangzhou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm and XinJiang GuoTong 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 GuoTong Pipeline are associated (or correlated) with Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Guangzhou Haige go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Guangzhou Haige
Assuming the 90 days trading horizon XinJiang GuoTong is expected to generate 1.05 times less return on investment than Guangzhou Haige. But when comparing it to its historical volatility, XinJiang GuoTong Pipeline is 1.01 times less risky than Guangzhou Haige. It trades about 0.2 of its potential returns per unit of risk. Guangzhou Haige Communications is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 854.00 in Guangzhou Haige Communications on September 7, 2024 and sell it today you would earn a total of 388.00 from holding Guangzhou Haige Communications or generate 45.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Guangzhou Haige Communications
Performance |
Timeline |
XinJiang GuoTong Pipeline |
Guangzhou Haige Comm |
XinJiang GuoTong and Guangzhou Haige Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XinJiang GuoTong and Guangzhou Haige
The main advantage of trading using opposite XinJiang GuoTong and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Guangzhou Haige 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 Guangzhou Haige will offset losses from the drop in Guangzhou Haige's long position.XinJiang GuoTong vs. Allwin Telecommunication Co | XinJiang GuoTong vs. Xiangyang Automobile Bearing | XinJiang GuoTong vs. Wuhan Yangtze Communication | XinJiang GuoTong vs. Beijing HuaYuanYiTong Thermal |
Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige vs. China Construction Bank | Guangzhou Haige 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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