Correlation Between Xinya Electronic and Gansu Jiu
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By analyzing existing cross correlation between Xinya Electronic Co and Gansu Jiu Steel, you can compare the effects of market volatilities on Xinya Electronic and Gansu Jiu 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 Xinya Electronic with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Gansu Jiu.
Diversification Opportunities for Xinya Electronic and Gansu Jiu
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinya and Gansu is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic Co and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel and Xinya Electronic 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 Xinya Electronic Co are associated (or correlated) with Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Xinya Electronic i.e., Xinya Electronic and Gansu Jiu go up and down completely randomly.
Pair Corralation between Xinya Electronic and Gansu Jiu
Assuming the 90 days trading horizon Xinya Electronic Co is expected to generate 0.92 times more return on investment than Gansu Jiu. However, Xinya Electronic Co is 1.08 times less risky than Gansu Jiu. It trades about 0.24 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.04 per unit of risk. If you would invest 1,336 in Xinya Electronic Co on September 24, 2024 and sell it today you would earn a total of 160.00 from holding Xinya Electronic Co or generate 11.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Xinya Electronic Co vs. Gansu Jiu Steel
Performance |
Timeline |
Xinya Electronic |
Gansu Jiu Steel |
Xinya Electronic and Gansu Jiu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinya Electronic and Gansu Jiu
The main advantage of trading using opposite Xinya Electronic and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.Xinya Electronic vs. Gan Yuan Foods | Xinya Electronic vs. Tsingtao Brewery Co | Xinya Electronic vs. Guangdong Wens Foodstuff | Xinya Electronic vs. Jiangsu Yanghe Brewery |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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