Correlation Between Xiamen Insight and Shenzhen Glory
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen Insight Investment and Shenzhen Glory Medical, you can compare the effects of market volatilities on Xiamen Insight and Shenzhen Glory 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 Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Insight and Shenzhen Glory.
Diversification Opportunities for Xiamen Insight and Shenzhen Glory
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Shenzhen is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Insight Investment and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical 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 Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Xiamen Insight i.e., Xiamen Insight and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Xiamen Insight and Shenzhen Glory
Assuming the 90 days trading horizon Xiamen Insight Investment is expected to generate 1.0 times more return on investment than Shenzhen Glory. However, Xiamen Insight is 1.0 times more volatile than Shenzhen Glory Medical. It trades about -0.07 of its potential returns per unit of risk. Shenzhen Glory Medical is currently generating about -0.16 per unit of risk. If you would invest 4,657 in Xiamen Insight Investment on November 3, 2024 and sell it today you would lose (443.00) from holding Xiamen Insight Investment or give up 9.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Insight Investment vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Xiamen Insight Investment |
| Shenzhen Glory Medical |
Xiamen Insight and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Insight and Shenzhen Glory
The main advantage of trading using opposite Xiamen Insight and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Insight position performs unexpectedly, Shenzhen Glory 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 Glory will offset losses from the drop in Shenzhen Glory'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 Glory vs. China Longyuan Power | Shenzhen Glory vs. PetroChina Co Ltd | Shenzhen Glory vs. Guangxi Guiguan Electric | Shenzhen Glory vs. Yantai North Andre |
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.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |