Correlation Between Ziel Home and Xinjiang Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ziel Home Furnishing and Xinjiang Communications Construction, you can compare the effects of market volatilities on Ziel Home and Xinjiang Communications 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 Ziel Home with a short position of Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziel Home and Xinjiang Communications.
Diversification Opportunities for Ziel Home and Xinjiang Communications
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ziel and Xinjiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ziel Home Furnishing and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications and Ziel Home 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 Ziel Home Furnishing are associated (or correlated) with Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Ziel Home i.e., Ziel Home and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Ziel Home and Xinjiang Communications
Assuming the 90 days trading horizon Ziel Home Furnishing is expected to generate 1.16 times more return on investment than Xinjiang Communications. However, Ziel Home is 1.16 times more volatile than Xinjiang Communications Construction. It trades about 0.01 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about -0.04 per unit of risk. If you would invest 2,200 in Ziel Home Furnishing on September 26, 2024 and sell it today you would lose (177.00) from holding Ziel Home Furnishing or give up 8.05% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ziel Home Furnishing vs. Xinjiang Communications Constr
Performance |
Timeline |
Ziel Home Furnishing |
Xinjiang Communications |
Ziel Home and Xinjiang Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ziel Home and Xinjiang Communications
The main advantage of trading using opposite Ziel Home and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziel Home position performs unexpectedly, Xinjiang Communications 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 Communications will offset losses from the drop in Xinjiang Communications' long position.Ziel Home vs. Sichuan Fulin Transportation | Ziel Home vs. Zhongyin Babi Food | Ziel Home vs. Tianshan Aluminum Group | Ziel Home vs. Suzhou Weizhixiang Food |
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 |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |