Correlation Between Xiandai Investment and Weihai Honglin
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By analyzing existing cross correlation between Xiandai Investment Co and Weihai Honglin Electronic, you can compare the effects of market volatilities on Xiandai Investment and Weihai Honglin 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 Xiandai Investment with a short position of Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Weihai Honglin.
Diversification Opportunities for Xiandai Investment and Weihai Honglin
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xiandai and Weihai is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Weihai Honglin go up and down completely randomly.
Pair Corralation between Xiandai Investment and Weihai Honglin
Assuming the 90 days trading horizon Xiandai Investment Co is expected to under-perform the Weihai Honglin. But the stock apears to be less risky and, when comparing its historical volatility, Xiandai Investment Co is 1.81 times less risky than Weihai Honglin. The stock trades about -0.28 of its potential returns per unit of risk. The Weihai Honglin Electronic is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,399 in Weihai Honglin Electronic on October 10, 2024 and sell it today you would earn a total of 164.00 from holding Weihai Honglin Electronic or generate 11.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Xiandai Investment |
| Weihai Honglin Electronic |
Xiandai Investment and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Weihai Honglin
The main advantage of trading using opposite Xiandai Investment and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's long position.| Xiandai Investment vs. JCHX Mining Management | Xiandai Investment vs. Maccura Biotechnology Co | Xiandai Investment vs. Guocheng Mining Co | Xiandai Investment vs. Uroica Mining Safety |
| Weihai Honglin vs. China Petroleum Chemical | Weihai Honglin vs. PetroChina Co Ltd | Weihai Honglin vs. China State Construction | Weihai Honglin vs. China Railway Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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