Correlation Between Dawning Information and XinJiang GuoTong
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By analyzing existing cross correlation between Dawning Information Industry and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Dawning 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 Dawning Information with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and XinJiang GuoTong.
Diversification Opportunities for Dawning Information and XinJiang GuoTong
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dawning and XinJiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry 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 Dawning 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 Dawning Information Industry 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 Dawning Information i.e., Dawning Information and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Dawning Information and XinJiang GuoTong
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.34 times more return on investment than XinJiang GuoTong. However, Dawning Information is 1.34 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.32 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.2 per unit of risk. If you would invest 3,452 in Dawning Information Industry on September 7, 2024 and sell it today you would earn a total of 4,143 from holding Dawning Information Industry or generate 120.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Dawning Information Industry vs. XinJiang GuoTong Pipeline
Performance |
Timeline |
Dawning Information |
XinJiang GuoTong Pipeline |
Dawning Information and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dawning Information and XinJiang GuoTong
The main advantage of trading using opposite Dawning Information and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning 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.Dawning Information vs. Ningbo Thermal Power | Dawning Information vs. Chengdu B ray Media | Dawning Information vs. Hefei Metalforming Mach | Dawning Information vs. Beijing HuaYuanYiTong Thermal |
XinJiang GuoTong vs. Agricultural Bank of | XinJiang GuoTong vs. Industrial and Commercial | XinJiang GuoTong vs. Bank of China | XinJiang GuoTong vs. PetroChina Co Ltd |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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