Correlation Between Lander Sports and Xiamen Goldenhome
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By analyzing existing cross correlation between Lander Sports Development and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Lander Sports and Xiamen Goldenhome 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 Lander Sports with a short position of Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lander Sports and Xiamen Goldenhome.
Diversification Opportunities for Lander Sports and Xiamen Goldenhome
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lander and Xiamen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lander Sports Development and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome and Lander Sports 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 Lander Sports Development are associated (or correlated) with Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Lander Sports i.e., Lander Sports and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Lander Sports and Xiamen Goldenhome
Assuming the 90 days trading horizon Lander Sports Development is expected to generate 2.15 times more return on investment than Xiamen Goldenhome. However, Lander Sports is 2.15 times more volatile than Xiamen Goldenhome Co. It trades about 0.06 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.09 per unit of risk. If you would invest 310.00 in Lander Sports Development on October 30, 2024 and sell it today you would earn a total of 12.00 from holding Lander Sports Development or generate 3.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lander Sports Development vs. Xiamen Goldenhome Co
Performance |
| Timeline |
| Lander Sports Development |
| Xiamen Goldenhome |
Lander Sports and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lander Sports and Xiamen Goldenhome
The main advantage of trading using opposite Lander Sports and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lander Sports position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| Lander Sports vs. Songz Automobile Air | Lander Sports vs. Jilin Jlu Communication | Lander Sports vs. Beijing Kaiwen Education | Lander Sports vs. Spring Airlines Co |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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