Correlation Between Xinjiang Communications and Hunan Investment
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By analyzing existing cross correlation between Xinjiang Communications Construction and Hunan Investment Group, you can compare the effects of market volatilities on Xinjiang Communications and Hunan Investment 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 Communications with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Communications and Hunan Investment.
Diversification Opportunities for Xinjiang Communications and Hunan Investment
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinjiang and Hunan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Communications Constr and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Xinjiang Communications 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 Communications Construction are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Xinjiang Communications i.e., Xinjiang Communications and Hunan Investment go up and down completely randomly.
Pair Corralation between Xinjiang Communications and Hunan Investment
Assuming the 90 days trading horizon Xinjiang Communications Construction is expected to generate 0.73 times more return on investment than Hunan Investment. However, Xinjiang Communications Construction is 1.38 times less risky than Hunan Investment. It trades about 0.02 of its potential returns per unit of risk. Hunan Investment Group is currently generating about -0.29 per unit of risk. If you would invest 1,233 in Xinjiang Communications Construction on September 25, 2024 and sell it today you would earn a total of 8.00 from holding Xinjiang Communications Construction or generate 0.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xinjiang Communications Constr vs. Hunan Investment Group
Performance |
Timeline |
Xinjiang Communications |
Hunan Investment |
Xinjiang Communications and Hunan Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinjiang Communications and Hunan Investment
The main advantage of trading using opposite Xinjiang Communications and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Communications position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.Xinjiang Communications vs. China Publishing Media | Xinjiang Communications vs. Chengdu B ray Media | Xinjiang Communications vs. Sportsoul Co Ltd | Xinjiang Communications vs. Ziel Home Furnishing |
Hunan Investment vs. Nanjing Putian Telecommunications | Hunan Investment vs. Tianjin Realty Development | Hunan Investment vs. Kangyue Technology Co | Hunan Investment vs. Shenzhen Hifuture Electric |
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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