Correlation Between Chengdu Xingrong and Xiamen Insight
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Xiamen Insight Investment, you can compare the effects of market volatilities on Chengdu Xingrong and Xiamen Insight 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 Chengdu Xingrong with a short position of Xiamen Insight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Xiamen Insight.
Diversification Opportunities for Chengdu Xingrong and Xiamen Insight
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Xiamen is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Xiamen Insight Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Insight Investment and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Xiamen Insight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Insight Investment has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Xiamen Insight go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Xiamen Insight
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to under-perform the Xiamen Insight. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu Xingrong Investment is 1.39 times less risky than Xiamen Insight. The stock trades about -0.12 of its potential returns per unit of risk. The Xiamen Insight Investment is currently generating about 0.01 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Xiamen Insight Investment
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Xiamen Insight Investment |
Chengdu Xingrong and Xiamen Insight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Xiamen Insight
The main advantage of trading using opposite Chengdu Xingrong and Xiamen Insight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Xiamen Insight 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 Insight will offset losses from the drop in Xiamen Insight's long position.| Chengdu Xingrong vs. Industrial and Commercial | Chengdu Xingrong vs. China Construction Bank | Chengdu Xingrong vs. Agricultural Bank of | Chengdu Xingrong vs. Bank of China |
| Xiamen Insight vs. Zhongyin Babi Food | Xiamen Insight vs. Youyou Foods Co | Xiamen Insight vs. Chengdu Xingrong Investment | Xiamen Insight vs. Hubei Geoway 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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