Correlation Between XinJiang GuoTong and Zhongtong Guomai
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Zhongtong Guomai Communication, you can compare the effects of market volatilities on XinJiang GuoTong and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Zhongtong Guomai.
Diversification Opportunities for XinJiang GuoTong and Zhongtong Guomai
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between XinJiang and Zhongtong is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Zhongtong Guomai
Assuming the 90 days trading horizon XinJiang GuoTong is expected to generate 1.17 times less return on investment than Zhongtong Guomai. But when comparing it to its historical volatility, XinJiang GuoTong Pipeline is 1.18 times less risky than Zhongtong Guomai. It trades about 0.2 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 763.00 in Zhongtong Guomai Communication on September 7, 2024 and sell it today you would earn a total of 386.00 from holding Zhongtong Guomai Communication or generate 50.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Zhongtong Guomai Communication
Performance |
Timeline |
XinJiang GuoTong Pipeline |
Zhongtong Guomai Com |
XinJiang GuoTong and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XinJiang GuoTong and Zhongtong Guomai
The main advantage of trading using opposite XinJiang GuoTong and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.XinJiang GuoTong vs. Agricultural Bank of | XinJiang GuoTong vs. Industrial and Commercial | XinJiang GuoTong vs. Bank of China | XinJiang GuoTong vs. PetroChina Co Ltd |
Zhongtong Guomai vs. China Sports Industry | Zhongtong Guomai vs. Anhui Deli Household | Zhongtong Guomai vs. Nanjing Putian Telecommunications | Zhongtong Guomai vs. Lander Sports Development |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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