Correlation Between Xiandai Investment and Datang HuaYin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiandai Investment Co and Datang HuaYin Electric, you can compare the effects of market volatilities on Xiandai Investment and Datang HuaYin 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 Datang HuaYin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Datang HuaYin.
Diversification Opportunities for Xiandai Investment and Datang HuaYin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiandai and Datang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Datang HuaYin Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang HuaYin Electric 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 Datang HuaYin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang HuaYin Electric has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Datang HuaYin go up and down completely randomly.
Pair Corralation between Xiandai Investment and Datang HuaYin
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 1.47 times more return on investment than Datang HuaYin. However, Xiandai Investment is 1.47 times more volatile than Datang HuaYin Electric. It trades about 0.2 of its potential returns per unit of risk. Datang HuaYin Electric is currently generating about 0.01 per unit of risk. If you would invest 412.00 in Xiandai Investment Co on September 2, 2024 and sell it today you would earn a total of 50.00 from holding Xiandai Investment Co or generate 12.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Datang HuaYin Electric
Performance |
| Timeline |
| Xiandai Investment |
| Datang HuaYin Electric |
Xiandai Investment and Datang HuaYin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Datang HuaYin
The main advantage of trading using opposite Xiandai Investment and Datang HuaYin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Datang HuaYin 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 Datang HuaYin will offset losses from the drop in Datang HuaYin's long position.| Xiandai Investment vs. Qumei Furniture Group | Xiandai Investment vs. Xiangtan Electrochemical Scientific | Xiandai Investment vs. Mengtian Home Group | Xiandai Investment vs. Guizhou Chanhen Chemical |
| Datang HuaYin vs. HaiXin Foods Co | Datang HuaYin vs. Sichuan Fulin Transportation | Datang HuaYin vs. Anhui Transport Consulting | Datang HuaYin vs. Great Sun Foods Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |