Correlation Between Shandong Publishing and XinJiang GuoTong
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By analyzing existing cross correlation between Shandong Publishing Media and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Shandong Publishing 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 Shandong Publishing with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and XinJiang GuoTong.
Diversification Opportunities for Shandong Publishing and XinJiang GuoTong
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and XinJiang is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media 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 Shandong Publishing 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 Shandong Publishing Media 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 Shandong Publishing i.e., Shandong Publishing and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Shandong Publishing and XinJiang GuoTong
Assuming the 90 days trading horizon Shandong Publishing is expected to generate 1.31 times less return on investment than XinJiang GuoTong. But when comparing it to its historical volatility, Shandong Publishing Media is 1.57 times less risky than XinJiang GuoTong. It trades about 0.12 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.1 of returns per unit of risk over similar time horizon. 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 Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Publishing Media vs. XinJiang GuoTong Pipeline
Performance |
Timeline |
Shandong Publishing Media |
XinJiang GuoTong Pipeline |
Shandong Publishing and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Publishing and XinJiang GuoTong
The main advantage of trading using opposite Shandong Publishing and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing 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.Shandong Publishing vs. Iat Automobile Technology | Shandong Publishing vs. Heilongjiang Transport Development | Shandong Publishing vs. Sinomach Automobile Co | Shandong Publishing vs. China Sports Industry |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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