Correlation Between Zhongtong Guomai and XinJiang GuoTong
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By analyzing existing cross correlation between Zhongtong Guomai Communication and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and XinJiang GuoTong.
Diversification Opportunities for Zhongtong Guomai and XinJiang GuoTong
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongtong and XinJiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and XinJiang GuoTong
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.16 times more return on investment than XinJiang GuoTong. However, Zhongtong Guomai is 1.16 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.24 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.21 per unit of risk. If you would invest 689.00 in Zhongtong Guomai Communication on September 11, 2024 and sell it today you would earn a total of 441.00 from holding Zhongtong Guomai Communication or generate 64.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongtong Guomai Communication vs. XinJiang GuoTong Pipeline
Performance |
Timeline |
Zhongtong Guomai Com |
XinJiang GuoTong Pipeline |
Zhongtong Guomai and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongtong Guomai and XinJiang GuoTong
The main advantage of trading using opposite Zhongtong Guomai and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.Zhongtong Guomai vs. AVIC Fund Management | Zhongtong Guomai vs. Shenzhen Bingchuan Network | Zhongtong Guomai vs. Penghua Shenzhen Energy | Zhongtong Guomai vs. Jizhong Energy Resources |
XinJiang GuoTong vs. Time Publishing and | XinJiang GuoTong vs. Heilongjiang Publishing Media | XinJiang GuoTong vs. Rising Nonferrous Metals | XinJiang GuoTong vs. CITIC Metal Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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