Correlation Between XinJiang GuoTong and Northern United
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Northern United Publishing, you can compare the effects of market volatilities on XinJiang GuoTong and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Northern United.
Diversification Opportunities for XinJiang GuoTong and Northern United
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between XinJiang and Northern is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Northern United go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Northern United
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 1.38 times more return on investment than Northern United. However, XinJiang GuoTong is 1.38 times more volatile than Northern United Publishing. It trades about 0.1 of its potential returns per unit of risk. Northern United Publishing is currently generating about 0.08 per unit of risk. If you would invest 891.00 in XinJiang GuoTong Pipeline on September 24, 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 | Very Strong |
Accuracy | 95.45% |
Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Northern United Publishing
Performance |
Timeline |
XinJiang GuoTong Pipeline |
Northern United Publ |
XinJiang GuoTong and Northern United Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XinJiang GuoTong and Northern United
The main advantage of trading using opposite XinJiang GuoTong and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.XinJiang GuoTong vs. Kweichow Moutai Co | XinJiang GuoTong vs. Contemporary Amperex Technology | XinJiang GuoTong vs. G bits Network Technology | XinJiang GuoTong vs. BYD Co Ltd |
Northern United vs. PetroChina Co Ltd | Northern United vs. China Mobile Limited | Northern United vs. CNOOC Limited | Northern United vs. Ping An Insurance |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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