Correlation Between Xiamen Insight and Shenzhen New
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By analyzing existing cross correlation between Xiamen Insight Investment and Shenzhen New Nanshan, you can compare the effects of market volatilities on Xiamen Insight and Shenzhen New 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 Shenzhen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Insight and Shenzhen New.
Diversification Opportunities for Xiamen Insight and Shenzhen New
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Shenzhen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Insight Investment and Shenzhen New Nanshan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen New Nanshan 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 Shenzhen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen New Nanshan has no effect on the direction of Xiamen Insight i.e., Xiamen Insight and Shenzhen New go up and down completely randomly.
Pair Corralation between Xiamen Insight and Shenzhen New
Assuming the 90 days trading horizon Xiamen Insight Investment is expected to generate 1.12 times more return on investment than Shenzhen New. However, Xiamen Insight is 1.12 times more volatile than Shenzhen New Nanshan. It trades about -0.08 of its potential returns per unit of risk. Shenzhen New Nanshan is currently generating about -0.22 per unit of risk. If you would invest 4,348 in Xiamen Insight Investment on November 3, 2024 and sell it today you would lose (134.00) from holding Xiamen Insight Investment or give up 3.08% 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. Shenzhen New Nanshan
Performance |
| Timeline |
| Xiamen Insight Investment |
| Shenzhen New Nanshan |
Xiamen Insight and Shenzhen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Insight and Shenzhen New
The main advantage of trading using opposite Xiamen Insight and Shenzhen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Insight position performs unexpectedly, Shenzhen New 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 Shenzhen New will offset losses from the drop in Shenzhen New's long position.| Xiamen Insight vs. Kuang Chi Technologies | Xiamen Insight vs. Jiangyin Jianghua Microelectronics | Xiamen Insight vs. XiaMen HongXin Electron tech | Xiamen Insight vs. Anhui Shiny Electronic |
| Shenzhen New vs. ZYF Lopsking Aluminum | Shenzhen New vs. Shandong Hongchuang Aluminum | Shenzhen New vs. Sichuan Fulin Transportation | Shenzhen New vs. Anhui Transport Consulting |
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 Stocks Directory module to find actively traded stocks across global markets.
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