Correlation Between Xiandai Investment and China Asset
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By analyzing existing cross correlation between Xiandai Investment Co and China Asset Management, you can compare the effects of market volatilities on Xiandai Investment and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and China Asset.
Diversification Opportunities for Xiandai Investment and China Asset
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xiandai and China is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and China Asset go up and down completely randomly.
Pair Corralation between Xiandai Investment and China Asset
Assuming the 90 days trading horizon Xiandai Investment Co is expected to under-perform the China Asset. In addition to that, Xiandai Investment is 1.32 times more volatile than China Asset Management. It trades about -0.31 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.57 per unit of volatility. If you would invest 353.00 in China Asset Management on October 25, 2024 and sell it today you would earn a total of 44.00 from holding China Asset Management or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. China Asset Management
Performance |
| Timeline |
| Xiandai Investment |
| China Asset Management |
Xiandai Investment and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and China Asset
The main advantage of trading using opposite Xiandai Investment and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Xiandai Investment vs. Kweichow Moutai Co | Xiandai Investment vs. Contemporary Amperex Technology | Xiandai Investment vs. Beijing Roborock Technology | Xiandai Investment vs. BYD Co Ltd |
| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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