Correlation Between Shaanxi Meineng and Bank of XiAn
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Bank of XiAn, you can compare the effects of market volatilities on Shaanxi Meineng and Bank of XiAn 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 Shaanxi Meineng with a short position of Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Bank of XiAn.
Diversification Opportunities for Shaanxi Meineng and Bank of XiAn
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shaanxi and Bank is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn and Shaanxi Meineng 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 Shaanxi Meineng Clean are associated (or correlated) with Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of Shaanxi Meineng i.e., Shaanxi Meineng and Bank of XiAn go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Bank of XiAn
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to generate 1.4 times more return on investment than Bank of XiAn. However, Shaanxi Meineng is 1.4 times more volatile than Bank of XiAn. It trades about 0.16 of its potential returns per unit of risk. Bank of XiAn is currently generating about 0.04 per unit of risk. If you would invest 1,283 in Shaanxi Meineng Clean on September 4, 2024 and sell it today you would earn a total of 113.00 from holding Shaanxi Meineng Clean or generate 8.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Bank of XiAn
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Bank of XiAn |
Shaanxi Meineng and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Bank of XiAn
The main advantage of trading using opposite Shaanxi Meineng and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn's long position.| Shaanxi Meineng vs. Wuhan Hvsen Biotechnology | Shaanxi Meineng vs. Zhangjiagang Freetrade Science | Shaanxi Meineng vs. Jiangsu GDK Biotechnology | Shaanxi Meineng vs. Yili Chuanning Biotechnology |
| Bank of XiAn vs. Luyin Investment Group | Bank of XiAn vs. Jointo Energy Investment | Bank of XiAn vs. Hunan Investment Group | Bank of XiAn vs. Harbin Hatou Investment |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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