Correlation Between Xiandai Investment and Guangdong Skychem
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By analyzing existing cross correlation between Xiandai Investment Co and Guangdong Skychem Technology, you can compare the effects of market volatilities on Xiandai Investment and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Guangdong Skychem.
Diversification Opportunities for Xiandai Investment and Guangdong Skychem
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiandai and Guangdong is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Xiandai Investment and Guangdong Skychem
Assuming the 90 days trading horizon Xiandai Investment is expected to generate 13.23 times less return on investment than Guangdong Skychem. But when comparing it to its historical volatility, Xiandai Investment Co is 2.88 times less risky than Guangdong Skychem. It trades about 0.01 of its potential returns per unit of risk. Guangdong Skychem Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,452 in Guangdong Skychem Technology on October 16, 2024 and sell it today you would earn a total of 2,568 from holding Guangdong Skychem Technology or generate 47.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.62% |
| Values | Daily Returns |
Xiandai Investment Co vs. Guangdong Skychem Technology
Performance |
| Timeline |
| Xiandai Investment |
| Guangdong Skychem |
Xiandai Investment and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Guangdong Skychem
The main advantage of trading using opposite Xiandai Investment and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| Xiandai Investment vs. Bingo Software Co | Xiandai Investment vs. China Publishing Media | Xiandai Investment vs. Shanghai Newtouch Software | Xiandai Investment vs. Guangzhou Jinyi Media |
| Guangdong Skychem vs. Kunwu Jiuding Investment | Guangdong Skychem vs. Xiandai Investment Co | Guangdong Skychem vs. Hubei Geoway Investment | Guangdong Skychem vs. Henan Shuanghui Investment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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