Correlation Between Financial Street and Xiamen Bank
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By analyzing existing cross correlation between Financial Street Holdings and Xiamen Bank Co, you can compare the effects of market volatilities on Financial Street and Xiamen Bank 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 Financial Street with a short position of Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Street and Xiamen Bank.
Diversification Opportunities for Financial Street and Xiamen Bank
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Financial and Xiamen is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Financial Street Holdings and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank and Financial Street 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 Financial Street Holdings are associated (or correlated) with Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Financial Street i.e., Financial Street and Xiamen Bank go up and down completely randomly.
Pair Corralation between Financial Street and Xiamen Bank
Assuming the 90 days trading horizon Financial Street Holdings is expected to under-perform the Xiamen Bank. In addition to that, Financial Street is 1.97 times more volatile than Xiamen Bank Co. It trades about -0.03 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.01 per unit of volatility. If you would invest 506.00 in Xiamen Bank Co on October 16, 2024 and sell it today you would earn a total of 14.00 from holding Xiamen Bank Co or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial Street Holdings vs. Xiamen Bank Co
Performance |
| Timeline |
| Financial Street Holdings |
| Xiamen Bank |
Financial Street and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Street and Xiamen Bank
The main advantage of trading using opposite Financial Street and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Street position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Financial Street vs. Zoje Resources Investment | Financial Street vs. Postal Savings Bank | Financial Street vs. Zhongrun Resources Investment | Financial Street vs. Hunan Investment Group |
| Xiamen Bank vs. Beijing Bewinner Communications | Xiamen Bank vs. Ningbo Ligong Online | Xiamen Bank vs. Nanning Chemical Industry | Xiamen Bank vs. Xinxiang Chemical Fiber |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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