Correlation Between Xiamen Insight and Sichuan Hebang
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By analyzing existing cross correlation between Xiamen Insight Investment and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Xiamen Insight and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Insight and Sichuan Hebang.
Diversification Opportunities for Xiamen Insight and Sichuan Hebang
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Sichuan is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Insight Investment and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Xiamen Insight i.e., Xiamen Insight and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Xiamen Insight and Sichuan Hebang
Assuming the 90 days trading horizon Xiamen Insight Investment is expected to generate 1.41 times more return on investment than Sichuan Hebang. However, Xiamen Insight is 1.41 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.24 per unit of risk. If you would invest 4,206 in Xiamen Insight Investment on November 1, 2024 and sell it today you would earn a total of 8.00 from holding Xiamen Insight Investment or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Insight Investment vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Xiamen Insight Investment |
| Sichuan Hebang Biote |
Xiamen Insight and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Insight and Sichuan Hebang
The main advantage of trading using opposite Xiamen Insight and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Insight position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Xiamen Insight vs. Zhongyin Babi Food | Xiamen Insight vs. Youyou Foods Co | Xiamen Insight vs. Chengdu Xingrong Investment | Xiamen Insight vs. Hubei Geoway Investment |
| Sichuan Hebang vs. Xiandai Investment Co | Sichuan Hebang vs. Beijing Enlight Media | Sichuan Hebang vs. Xiamen Insight Investment | Sichuan Hebang vs. Omnijoi Media Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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