Correlation Between Xiamen Insight and Jiangsu Zhongtian
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By analyzing existing cross correlation between Xiamen Insight Investment and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Xiamen Insight and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Insight and Jiangsu Zhongtian.
Diversification Opportunities for Xiamen Insight and Jiangsu Zhongtian
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Jiangsu is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Insight Investment and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Xiamen Insight i.e., Xiamen Insight and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Xiamen Insight and Jiangsu Zhongtian
Assuming the 90 days trading horizon Xiamen Insight Investment is expected to generate 1.11 times more return on investment than Jiangsu Zhongtian. However, Xiamen Insight is 1.11 times more volatile than Jiangsu Zhongtian Technology. It trades about -0.03 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about -0.23 per unit of risk. If you would invest 4,290 in Xiamen Insight Investment on October 22, 2024 and sell it today you would lose (77.00) from holding Xiamen Insight Investment or give up 1.79% 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. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Xiamen Insight Investment |
| Jiangsu Zhongtian |
Xiamen Insight and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Insight and Jiangsu Zhongtian
The main advantage of trading using opposite Xiamen Insight and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Insight position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Xiamen Insight vs. Gem Year Industrial Co | Xiamen Insight vs. Zhejiang Kingland Pipeline | Xiamen Insight vs. Soochow Suzhou Industrial | Xiamen Insight vs. Suzhou Douson Drilling |
| Jiangsu Zhongtian vs. Hubei Geoway Investment | Jiangsu Zhongtian vs. Chengdu Xingrong Investment | Jiangsu Zhongtian vs. Luyin Investment Group | Jiangsu Zhongtian vs. Xiamen Insight Investment |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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