Correlation Between Zhejiang Qianjiang and Xiamen Bank
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By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and Xiamen Bank Co, you can compare the effects of market volatilities on Zhejiang Qianjiang and Xiamen Bank 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 Zhejiang Qianjiang with a short position of Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and Xiamen Bank.
Diversification Opportunities for Zhejiang Qianjiang and Xiamen Bank
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zhejiang and Xiamen is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank and Zhejiang Qianjiang 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 Zhejiang Qianjiang Motorcycle are associated (or correlated) with Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Zhejiang Qianjiang i.e., Zhejiang Qianjiang and Xiamen Bank go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and Xiamen Bank
Assuming the 90 days trading horizon Zhejiang Qianjiang Motorcycle is expected to generate 2.23 times more return on investment than Xiamen Bank. However, Zhejiang Qianjiang is 2.23 times more volatile than Xiamen Bank Co. It trades about 0.12 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about -0.16 per unit of risk. If you would invest 1,843 in Zhejiang Qianjiang Motorcycle on October 28, 2024 and sell it today you would earn a total of 131.00 from holding Zhejiang Qianjiang Motorcycle or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. Xiamen Bank Co
Performance |
| Timeline |
| Zhejiang Qianjiang |
| Xiamen Bank |
Zhejiang Qianjiang and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Qianjiang and Xiamen Bank
The main advantage of trading using opposite Zhejiang Qianjiang and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Zhejiang Qianjiang vs. Dymatic Chemicals | Zhejiang Qianjiang vs. Eastroc Beverage Group | Zhejiang Qianjiang vs. V V Food | Zhejiang Qianjiang vs. Shandong Rike Chemical |
| Xiamen Bank vs. Tianjin Ruixin Technology | Xiamen Bank vs. Olympic Circuit Technology | Xiamen Bank vs. Chongqing Brewery Co | Xiamen Bank vs. iSoftStone Information Technology |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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