Correlation Between XinJiang GuoTong and Hengerda New
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Hengerda New Materials, you can compare the effects of market volatilities on XinJiang GuoTong and Hengerda New 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 GuoTong with a short position of Hengerda New. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Hengerda New.
Diversification Opportunities for XinJiang GuoTong and Hengerda New
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XinJiang and Hengerda is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Hengerda New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengerda New Materials and XinJiang GuoTong 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 GuoTong Pipeline are associated (or correlated) with Hengerda New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengerda New Materials has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Hengerda New go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Hengerda New
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 1.1 times more return on investment than Hengerda New. However, XinJiang GuoTong is 1.1 times more volatile than Hengerda New Materials. It trades about 0.1 of its potential returns per unit of risk. Hengerda New Materials is currently generating about 0.07 per unit of risk. If you would invest 730.00 in XinJiang GuoTong Pipeline on September 27, 2024 and sell it today you would earn a total of 161.00 from holding XinJiang GuoTong Pipeline or generate 22.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Hengerda New Materials
Performance |
Timeline |
XinJiang GuoTong Pipeline |
Hengerda New Materials |
XinJiang GuoTong and Hengerda New Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XinJiang GuoTong and Hengerda New
The main advantage of trading using opposite XinJiang GuoTong and Hengerda New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Hengerda New 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 Hengerda New will offset losses from the drop in Hengerda New's long position.XinJiang GuoTong vs. Miracll Chemicals Co | XinJiang GuoTong vs. Sihui Fuji Electronics | XinJiang GuoTong vs. Guangzhou Fangbang Electronics | XinJiang GuoTong vs. Datang HuaYin Electric |
Hengerda New vs. Bank of China | Hengerda New vs. Kweichow Moutai Co | Hengerda New vs. PetroChina Co Ltd | Hengerda New vs. Bank of Communications |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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