Correlation Between Sinosteel Luonai and Xinya Electronic
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By analyzing existing cross correlation between Sinosteel Luonai Materials and Xinya Electronic Co, you can compare the effects of market volatilities on Sinosteel Luonai and Xinya Electronic 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 Sinosteel Luonai with a short position of Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Luonai and Xinya Electronic.
Diversification Opportunities for Sinosteel Luonai and Xinya Electronic
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinosteel and Xinya is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Luonai Materials and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic and Sinosteel Luonai 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 Sinosteel Luonai Materials are associated (or correlated) with Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Sinosteel Luonai i.e., Sinosteel Luonai and Xinya Electronic go up and down completely randomly.
Pair Corralation between Sinosteel Luonai and Xinya Electronic
Assuming the 90 days trading horizon Sinosteel Luonai Materials is expected to generate 1.3 times more return on investment than Xinya Electronic. However, Sinosteel Luonai is 1.3 times more volatile than Xinya Electronic Co. It trades about 0.14 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.18 per unit of risk. If you would invest 310.00 in Sinosteel Luonai Materials on September 24, 2024 and sell it today you would earn a total of 99.00 from holding Sinosteel Luonai Materials or generate 31.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.36% |
Values | Daily Returns |
Sinosteel Luonai Materials vs. Xinya Electronic Co
Performance |
Timeline |
Sinosteel Luonai Mat |
Xinya Electronic |
Sinosteel Luonai and Xinya Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinosteel Luonai and Xinya Electronic
The main advantage of trading using opposite Sinosteel Luonai and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Luonai position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.Sinosteel Luonai vs. Zijin Mining Group | Sinosteel Luonai vs. Wanhua Chemical Group | Sinosteel Luonai vs. Baoshan Iron Steel | Sinosteel Luonai vs. Shandong Gold Mining |
Xinya Electronic vs. Kweichow Moutai Co | Xinya Electronic vs. Contemporary Amperex Technology | Xinya Electronic vs. G bits Network Technology | Xinya Electronic vs. BYD Co Ltd |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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