Correlation Between Xian International and Xiamen CD
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By analyzing existing cross correlation between Xian International Medical and Xiamen CD, you can compare the effects of market volatilities on Xian International and Xiamen CD 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 Xian International with a short position of Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xian International and Xiamen CD.
Diversification Opportunities for Xian International and Xiamen CD
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xian and Xiamen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Xian International Medical and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD and Xian International 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 Xian International Medical are associated (or correlated) with Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Xian International i.e., Xian International and Xiamen CD go up and down completely randomly.
Pair Corralation between Xian International and Xiamen CD
Assuming the 90 days trading horizon Xian International Medical is expected to generate 1.63 times more return on investment than Xiamen CD. However, Xian International is 1.63 times more volatile than Xiamen CD. It trades about 0.17 of its potential returns per unit of risk. Xiamen CD is currently generating about 0.11 per unit of risk. If you would invest 543.00 in Xian International Medical on September 1, 2024 and sell it today you would earn a total of 77.00 from holding Xian International Medical or generate 14.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xian International Medical vs. Xiamen CD
Performance |
| Timeline |
| Xian International |
| Xiamen CD |
Xian International and Xiamen CD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xian International and Xiamen CD
The main advantage of trading using opposite Xian International and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xian International position performs unexpectedly, Xiamen CD 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 CD will offset losses from the drop in Xiamen CD's long position.| Xian International vs. Bank of China | Xian International vs. Kweichow Moutai Co | Xian International vs. PetroChina Co Ltd | Xian International vs. Bank of Communications |
| Xiamen CD vs. Lander Sports Development | Xiamen CD vs. Sportsoul Co Ltd | Xiamen CD vs. Zhejiang Daily Media | Xiamen CD vs. Inly Media Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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