Correlation Between Longmaster Information and XinJiang GuoTong
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By analyzing existing cross correlation between Longmaster Information Tech and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Longmaster Information and XinJiang GuoTong 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 Longmaster Information with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and XinJiang GuoTong.
Diversification Opportunities for Longmaster Information and XinJiang GuoTong
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Longmaster and XinJiang is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Longmaster Information 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 Longmaster Information Tech are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Longmaster Information i.e., Longmaster Information and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Longmaster Information and XinJiang GuoTong
Assuming the 90 days trading horizon Longmaster Information is expected to generate 2.66 times less return on investment than XinJiang GuoTong. In addition to that, Longmaster Information is 1.34 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.02 of its total potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.06 per unit of volatility. If you would invest 869.00 in XinJiang GuoTong Pipeline on December 28, 2024 and sell it today you would earn a total of 61.00 from holding XinJiang GuoTong Pipeline or generate 7.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Longmaster Information Tech vs. XinJiang GuoTong Pipeline
Performance |
Timeline |
Longmaster Information |
XinJiang GuoTong Pipeline |
Longmaster Information and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Longmaster Information and XinJiang GuoTong
The main advantage of trading using opposite Longmaster Information and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.Longmaster Information vs. Fujian Anjoy Foods | Longmaster Information vs. Beingmate Baby Child | Longmaster Information vs. Yankershop Food Co | Longmaster Information vs. Hainan Mining Co |
XinJiang GuoTong vs. Bengang Steel Plates | XinJiang GuoTong vs. CICC Fund Management | XinJiang GuoTong vs. Fushun Special Steel | XinJiang GuoTong vs. Cicc Fund Management |
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 CEOs Directory module to screen CEOs from public companies around the world.
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