Correlation Between Vatti Corp and Xiamen Jihong
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By analyzing existing cross correlation between Vatti Corp and Xiamen Jihong Package, you can compare the effects of market volatilities on Vatti Corp and Xiamen Jihong 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 Vatti Corp with a short position of Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vatti Corp and Xiamen Jihong.
Diversification Opportunities for Vatti Corp and Xiamen Jihong
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vatti and Xiamen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Vatti Corp and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package and Vatti Corp 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 Vatti Corp are associated (or correlated) with Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Vatti Corp i.e., Vatti Corp and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Vatti Corp and Xiamen Jihong
Assuming the 90 days trading horizon Vatti Corp is expected to generate 1.51 times less return on investment than Xiamen Jihong. But when comparing it to its historical volatility, Vatti Corp is 1.18 times less risky than Xiamen Jihong. It trades about 0.06 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,002 in Xiamen Jihong Package on October 18, 2024 and sell it today you would earn a total of 269.00 from holding Xiamen Jihong Package or generate 26.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vatti Corp vs. Xiamen Jihong Package
Performance |
| Timeline |
| Vatti Corp |
| Xiamen Jihong Package |
Vatti Corp and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vatti Corp and Xiamen Jihong
The main advantage of trading using opposite Vatti Corp and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vatti Corp position performs unexpectedly, Xiamen Jihong 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 Jihong will offset losses from the drop in Xiamen Jihong's long position.| Vatti Corp vs. Xiamen Jihong Package | Vatti Corp vs. Fujian Anjoy Foods | Vatti Corp vs. Huatian Hotel Group | Vatti Corp vs. Qingdao Foods Co |
| Xiamen Jihong vs. Fujian Oriental Silver | Xiamen Jihong vs. Chenzhou Jingui Silver | Xiamen Jihong vs. Xinjiang Baodi Mining | Xiamen Jihong vs. Eastern Air Logistics |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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