Correlation Between Xinxiang Chemical and A-Zenith Home
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By analyzing existing cross correlation between Xinxiang Chemical Fiber and A Zenith Home Furnishings, you can compare the effects of market volatilities on Xinxiang Chemical and A-Zenith Home 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 A-Zenith Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinxiang Chemical and A-Zenith Home.
Diversification Opportunities for Xinxiang Chemical and A-Zenith Home
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinxiang and A-Zenith is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Xinxiang Chemical Fiber and A Zenith Home Furnishings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Zenith Home 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 A-Zenith Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Zenith Home has no effect on the direction of Xinxiang Chemical i.e., Xinxiang Chemical and A-Zenith Home go up and down completely randomly.
Pair Corralation between Xinxiang Chemical and A-Zenith Home
Assuming the 90 days trading horizon Xinxiang Chemical Fiber is expected to generate 0.47 times more return on investment than A-Zenith Home. However, Xinxiang Chemical Fiber is 2.12 times less risky than A-Zenith Home. It trades about 0.32 of its potential returns per unit of risk. A Zenith Home Furnishings is currently generating about -0.23 per unit of risk. If you would invest 377.00 in Xinxiang Chemical Fiber on November 5, 2024 and sell it today you would earn a total of 33.00 from holding Xinxiang Chemical Fiber or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinxiang Chemical Fiber vs. A Zenith Home Furnishings
Performance |
| Timeline |
| Xinxiang Chemical Fiber |
| A Zenith Home |
Xinxiang Chemical and A-Zenith Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinxiang Chemical and A-Zenith Home
The main advantage of trading using opposite Xinxiang Chemical and A-Zenith Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinxiang Chemical position performs unexpectedly, A-Zenith Home 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 A-Zenith Home will offset losses from the drop in A-Zenith Home's long position.| Xinxiang Chemical vs. Zoy Home Furnishing | Xinxiang Chemical vs. Huaibei Mining Holdings | Xinxiang Chemical vs. Tibet Huayu Mining | Xinxiang Chemical vs. Easyhome New Retail |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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