Correlation Between Xinxiang Chemical and Xiamen Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinxiang Chemical Fiber and Xiamen Bank Co, you can compare the effects of market volatilities on Xinxiang Chemical 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 Xinxiang Chemical with a short position of Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinxiang Chemical and Xiamen Bank.
Diversification Opportunities for Xinxiang Chemical and Xiamen Bank
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xinxiang and Xiamen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Xinxiang Chemical Fiber and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 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 Xinxiang Chemical i.e., Xinxiang Chemical and Xiamen Bank go up and down completely randomly.
Pair Corralation between Xinxiang Chemical and Xiamen Bank
Assuming the 90 days trading horizon Xinxiang Chemical Fiber is expected to under-perform the Xiamen Bank. In addition to that, Xinxiang Chemical is 2.05 times more volatile than Xiamen Bank Co. It trades about -0.35 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about -0.3 per unit of volatility. If you would invest 567.00 in Xiamen Bank Co on October 16, 2024 and sell it today you would lose (47.00) from holding Xiamen Bank Co or give up 8.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinxiang Chemical Fiber vs. Xiamen Bank Co
Performance |
| Timeline |
| Xinxiang Chemical Fiber |
| Xiamen Bank |
Xinxiang Chemical and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinxiang Chemical and Xiamen Bank
The main advantage of trading using opposite Xinxiang Chemical and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinxiang Chemical 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.| Xinxiang Chemical vs. Hunan Mendale Hometextile | Xinxiang Chemical vs. UE Furniture Co | Xinxiang Chemical vs. Easyhome New Retail | Xinxiang Chemical vs. Xiamen Goldenhome Co |
| Xiamen Bank vs. Beijing Bewinner Communications | Xiamen Bank vs. Ningbo Ligong Online | Xiamen Bank vs. Nanning Chemical Industry | Xiamen Bank vs. Xinxiang Chemical Fiber |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |