Correlation Between Xinjiang Communications and Changjiang Jinggong
Specify exactly 2 symbols:
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
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Changjiang is 0.92. 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 1.47 times more return on investment than Changjiang Jinggong. However, Xinjiang Communications is 1.47 times more volatile than Changjiang Jinggong Steel. It trades about 0.16 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about 0.24 per unit of risk. If you would invest 927.00 in Xinjiang Communications Construction on September 9, 2024 and sell it today you would earn a total of 331.00 from holding Xinjiang Communications Construction or generate 35.71% 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. Industrial and Commercial | Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. China Construction Bank | Xinjiang Communications vs. Postal Savings Bank |
Changjiang Jinggong vs. Industrial and Commercial | Changjiang Jinggong vs. Agricultural Bank of | Changjiang Jinggong vs. China Construction Bank | Changjiang Jinggong vs. Postal Savings Bank |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |