Correlation Between Xiamen Hexing and Jiangsu Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen Hexing Packaging and Jiangsu Financial Leasing, you can compare the effects of market volatilities on Xiamen Hexing and Jiangsu Financial 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 Xiamen Hexing with a short position of Jiangsu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Hexing and Jiangsu Financial.
Diversification Opportunities for Xiamen Hexing and Jiangsu Financial
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Jiangsu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Hexing Packaging and Jiangsu Financial Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Financial Leasing and Xiamen Hexing 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 Xiamen Hexing Packaging are associated (or correlated) with Jiangsu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Financial Leasing has no effect on the direction of Xiamen Hexing i.e., Xiamen Hexing and Jiangsu Financial go up and down completely randomly.
Pair Corralation between Xiamen Hexing and Jiangsu Financial
Assuming the 90 days trading horizon Xiamen Hexing Packaging is expected to generate 1.38 times more return on investment than Jiangsu Financial. However, Xiamen Hexing is 1.38 times more volatile than Jiangsu Financial Leasing. It trades about 0.38 of its potential returns per unit of risk. Jiangsu Financial Leasing is currently generating about -0.05 per unit of risk. If you would invest 295.00 in Xiamen Hexing Packaging on September 15, 2024 and sell it today you would earn a total of 39.00 from holding Xiamen Hexing Packaging or generate 13.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Hexing Packaging vs. Jiangsu Financial Leasing
Performance |
| Timeline |
| Xiamen Hexing Packaging |
| Jiangsu Financial Leasing |
Xiamen Hexing and Jiangsu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Hexing and Jiangsu Financial
The main advantage of trading using opposite Xiamen Hexing and Jiangsu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Hexing position performs unexpectedly, Jiangsu Financial 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 Jiangsu Financial will offset losses from the drop in Jiangsu Financial's long position.| Xiamen Hexing vs. Jiangsu Financial Leasing | Xiamen Hexing vs. Dymatic Chemicals | Xiamen Hexing vs. Guangzhou Zhujiang Brewery | Xiamen Hexing vs. Ningxia Younglight Chemicals |
| Jiangsu Financial vs. Kweichow Moutai Co | Jiangsu Financial vs. Shenzhen Mindray Bio Medical | Jiangsu Financial vs. G bits Network Technology | Jiangsu Financial vs. Shenzhen Transsion Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |