Correlation Between Xinjiang Communications and Changjiang Jinggong
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By analyzing existing cross correlation between Xinjiang Communications Construction and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Xinjiang Communications and Changjiang Jinggong 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 Communications with a short position of Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Changjiang Jinggong.
Diversification Opportunities for Xinjiang Communications and Changjiang Jinggong
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Changjiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel and Xinjiang Communications 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 Communications Construction are associated (or correlated) with Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Changjiang Jinggong
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 1.48 times more return on investment than Changjiang Jinggong. However, Xinjiang Communications is 1.48 times more volatile than Changjiang Jinggong Steel. It trades about 0.15 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about 0.2 per unit of risk. If you would invest 935.00 in Xinjiang Communications Construction on September 6, 2024 and sell it today you would earn a total of 303.00 from holding Xinjiang Communications Construction or generate 32.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xinjiang Communications Constr vs. Changjiang Jinggong Steel
Performance |
Timeline |
Xinjiang Communications |
Changjiang Jinggong Steel |
Xinjiang Communications and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinjiang Communications and Changjiang Jinggong
The main advantage of trading using opposite Xinjiang Communications and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.Xinjiang Communications vs. China Life Insurance | Xinjiang Communications vs. Cinda Securities Co | Xinjiang Communications vs. Piotech Inc A | Xinjiang Communications vs. Dongxing Sec Co |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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