Correlation Between Xiandai Investment and Sichuan Hebang
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By analyzing existing cross correlation between Xiandai Investment Co and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Xiandai Investment and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Sichuan Hebang.
Diversification Opportunities for Xiandai Investment and Sichuan Hebang
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiandai and Sichuan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Xiandai Investment and Sichuan Hebang
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 1.01 times more return on investment than Sichuan Hebang. However, Xiandai Investment is 1.01 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.19 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about 0.17 per unit of risk. If you would invest 423.00 in Xiandai Investment Co on September 13, 2024 and sell it today you would earn a total of 48.00 from holding Xiandai Investment Co or generate 11.35% 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. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Xiandai Investment |
| Sichuan Hebang Biote |
Xiandai Investment and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Sichuan Hebang
The main advantage of trading using opposite Xiandai Investment and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Xiandai Investment vs. Industrial and Commercial | Xiandai Investment vs. Kweichow Moutai Co | Xiandai Investment vs. Agricultural Bank of | Xiandai Investment vs. China Mobile Limited |
| Sichuan Hebang vs. Hengli Industrial Development | Sichuan Hebang vs. Xiandai Investment Co | Sichuan Hebang vs. Yunnan Xiyi Industrial | Sichuan Hebang vs. Postal Savings Bank |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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