Correlation Between Xiandai Investment and Gem Year
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By analyzing existing cross correlation between Xiandai Investment Co and Gem Year Industrial Co, you can compare the effects of market volatilities on Xiandai Investment and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Gem Year.
Diversification Opportunities for Xiandai Investment and Gem Year
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiandai and Gem is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Gem Year go up and down completely randomly.
Pair Corralation between Xiandai Investment and Gem Year
Assuming the 90 days trading horizon Xiandai Investment is expected to generate 1.79 times less return on investment than Gem Year. But when comparing it to its historical volatility, Xiandai Investment Co is 1.26 times less risky than Gem Year. It trades about 0.18 of its potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 287.00 in Gem Year Industrial Co on August 28, 2024 and sell it today you would earn a total of 159.00 from holding Gem Year Industrial Co or generate 55.4% 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. Gem Year Industrial Co
Performance |
| Timeline |
| Xiandai Investment |
| Gem Year Industrial |
Xiandai Investment and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Gem Year
The main advantage of trading using opposite Xiandai Investment and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Xiandai Investment vs. Industrial and Commercial | Xiandai Investment vs. China Construction Bank | Xiandai Investment vs. Agricultural Bank of | Xiandai Investment vs. Bank of China |
| Gem Year vs. Industrial and Commercial | Gem Year vs. Agricultural Bank of | Gem Year vs. China Construction Bank | Gem Year vs. Bank of China |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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