Correlation Between XinJiang GuoTong and Dongjiang Environmental
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Dongjiang Environmental Co, you can compare the effects of market volatilities on XinJiang GuoTong and Dongjiang Environmental 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 Dongjiang Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Dongjiang Environmental.
Diversification Opportunities for XinJiang GuoTong and Dongjiang Environmental
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XinJiang and Dongjiang is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Dongjiang Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongjiang Environmental 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 Dongjiang Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongjiang Environmental has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Dongjiang Environmental go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Dongjiang Environmental
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 1.9 times more return on investment than Dongjiang Environmental. However, XinJiang GuoTong is 1.9 times more volatile than Dongjiang Environmental Co. It trades about 0.1 of its potential returns per unit of risk. Dongjiang Environmental Co is currently generating about -0.15 per unit of risk. If you would invest 891.00 in XinJiang GuoTong Pipeline on September 25, 2024 and sell it today you would earn a total of 72.00 from holding XinJiang GuoTong Pipeline or generate 8.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Dongjiang Environmental Co
Performance |
Timeline |
XinJiang GuoTong Pipeline |
Dongjiang Environmental |
XinJiang GuoTong and Dongjiang Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XinJiang GuoTong and Dongjiang Environmental
The main advantage of trading using opposite XinJiang GuoTong and Dongjiang Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Dongjiang Environmental 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 Dongjiang Environmental will offset losses from the drop in Dongjiang Environmental's long position.XinJiang GuoTong vs. Jinhe Biotechnology Co | XinJiang GuoTong vs. Qijing Machinery | XinJiang GuoTong vs. Kuangda Technology Group | XinJiang GuoTong vs. Eyebright Medical Technology |
Dongjiang Environmental vs. Ming Yang Smart | Dongjiang Environmental vs. 159681 | Dongjiang Environmental vs. 159005 | Dongjiang Environmental vs. Loctek Ergonomic Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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