Correlation Between Soyea Technology and Xinhu Zhongbao
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By analyzing existing cross correlation between Soyea Technology Co and Xinhu Zhongbao Co, you can compare the effects of market volatilities on Soyea Technology and Xinhu Zhongbao 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 Soyea Technology with a short position of Xinhu Zhongbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soyea Technology and Xinhu Zhongbao.
Diversification Opportunities for Soyea Technology and Xinhu Zhongbao
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Soyea and Xinhu is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Soyea Technology Co and Xinhu Zhongbao Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhu Zhongbao and Soyea Technology 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 Soyea Technology Co are associated (or correlated) with Xinhu Zhongbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhu Zhongbao has no effect on the direction of Soyea Technology i.e., Soyea Technology and Xinhu Zhongbao go up and down completely randomly.
Pair Corralation between Soyea Technology and Xinhu Zhongbao
Assuming the 90 days trading horizon Soyea Technology Co is expected to under-perform the Xinhu Zhongbao. In addition to that, Soyea Technology is 1.43 times more volatile than Xinhu Zhongbao Co. It trades about -0.28 of its total potential returns per unit of risk. Xinhu Zhongbao Co is currently generating about -0.11 per unit of volatility. If you would invest 305.00 in Xinhu Zhongbao Co on October 21, 2024 and sell it today you would lose (15.00) from holding Xinhu Zhongbao Co or give up 4.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soyea Technology Co vs. Xinhu Zhongbao Co
Performance |
| Timeline |
| Soyea Technology |
| Xinhu Zhongbao |
Soyea Technology and Xinhu Zhongbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soyea Technology and Xinhu Zhongbao
The main advantage of trading using opposite Soyea Technology and Xinhu Zhongbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soyea Technology position performs unexpectedly, Xinhu Zhongbao 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 Xinhu Zhongbao will offset losses from the drop in Xinhu Zhongbao's long position.| Soyea Technology vs. Shanghai Yanpu Metal | Soyea Technology vs. Guangdong Jingyi Metal | Soyea Technology vs. Digiwin Software Co | Soyea Technology vs. Chongqing Shunbo Aluminum |
| Xinhu Zhongbao vs. Dezhan HealthCare Co | Xinhu Zhongbao vs. Goodwill E Health | Xinhu Zhongbao vs. Mingchen Health Co | Xinhu Zhongbao vs. CICC Fund Management |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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