Correlation Between Xinxiang Chemical and Caihong Display
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinxiang Chemical Fiber and Caihong Display Devices, you can compare the effects of market volatilities on Xinxiang Chemical and Caihong Display 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 Xinxiang Chemical with a short position of Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinxiang Chemical and Caihong Display.
Diversification Opportunities for Xinxiang Chemical and Caihong Display
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xinxiang and Caihong is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Xinxiang Chemical Fiber and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices and Xinxiang Chemical 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 Xinxiang Chemical Fiber are associated (or correlated) with Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Xinxiang Chemical i.e., Xinxiang Chemical and Caihong Display go up and down completely randomly.
Pair Corralation between Xinxiang Chemical and Caihong Display
Assuming the 90 days trading horizon Xinxiang Chemical Fiber is expected to generate 1.33 times more return on investment than Caihong Display. However, Xinxiang Chemical is 1.33 times more volatile than Caihong Display Devices. It trades about 0.11 of its potential returns per unit of risk. Caihong Display Devices is currently generating about 0.15 per unit of risk. If you would invest 301.00 in Xinxiang Chemical Fiber on October 18, 2024 and sell it today you would earn a total of 105.00 from holding Xinxiang Chemical Fiber or generate 34.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinxiang Chemical Fiber vs. Caihong Display Devices
Performance |
| Timeline |
| Xinxiang Chemical Fiber |
| Caihong Display Devices |
Xinxiang Chemical and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinxiang Chemical and Caihong Display
The main advantage of trading using opposite Xinxiang Chemical and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinxiang Chemical position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| Xinxiang Chemical vs. Shenzhen Noposion Agrochemicals | Xinxiang Chemical vs. Jilin Chemical Fibre | Xinxiang Chemical vs. Qumei Furniture Group | Xinxiang Chemical vs. Shandong Rike Chemical |
| Caihong Display vs. Kangping Technology Co | Caihong Display vs. Gansu Huangtai Wine marketing | Caihong Display vs. Xinxiang Chemical Fiber | Caihong Display vs. Hengli Petrochemical Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |