Correlation Between Xiamen Insight and Beijing Shunxin
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By analyzing existing cross correlation between Xiamen Insight Investment and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on Xiamen Insight and Beijing Shunxin 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 Xiamen Insight with a short position of Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Insight and Beijing Shunxin.
Diversification Opportunities for Xiamen Insight and Beijing Shunxin
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Beijing is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Insight Investment and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri and Xiamen Insight 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 Xiamen Insight Investment are associated (or correlated) with Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of Xiamen Insight i.e., Xiamen Insight and Beijing Shunxin go up and down completely randomly.
Pair Corralation between Xiamen Insight and Beijing Shunxin
Assuming the 90 days trading horizon Xiamen Insight Investment is expected to generate 1.02 times more return on investment than Beijing Shunxin. However, Xiamen Insight is 1.02 times more volatile than Beijing Shunxin Agriculture. It trades about -0.11 of its potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about -0.3 per unit of risk. If you would invest 4,329 in Xiamen Insight Investment on October 29, 2024 and sell it today you would lose (206.00) from holding Xiamen Insight Investment or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Insight Investment vs. Beijing Shunxin Agriculture
Performance |
| Timeline |
| Xiamen Insight Investment |
| Beijing Shunxin Agri |
Xiamen Insight and Beijing Shunxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Insight and Beijing Shunxin
The main advantage of trading using opposite Xiamen Insight and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Insight position performs unexpectedly, Beijing Shunxin 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 Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.| Xiamen Insight vs. Ming Yang Smart | Xiamen Insight vs. 159681 | Xiamen Insight vs. 159005 | Xiamen Insight vs. Loctek Ergonomic Technology |
| Beijing Shunxin vs. Chengdu Kanghua Biological | Beijing Shunxin vs. Beijing Wantai Biological | Beijing Shunxin vs. Suzhou Novoprotein Scientific | Beijing Shunxin vs. Aluminum Corp of |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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