Correlation Between Xiamen Hexing and China Publishing
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By analyzing existing cross correlation between Xiamen Hexing Packaging and China Publishing Media, you can compare the effects of market volatilities on Xiamen Hexing and China Publishing 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Hexing and China Publishing.
Diversification Opportunities for Xiamen Hexing and China Publishing
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and China is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Hexing Packaging and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Xiamen Hexing i.e., Xiamen Hexing and China Publishing go up and down completely randomly.
Pair Corralation between Xiamen Hexing and China Publishing
Assuming the 90 days trading horizon Xiamen Hexing Packaging is expected to generate 0.66 times more return on investment than China Publishing. However, Xiamen Hexing Packaging is 1.51 times less risky than China Publishing. It trades about 0.11 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.06 per unit of risk. If you would invest 235.00 in Xiamen Hexing Packaging on November 3, 2024 and sell it today you would earn a total of 63.00 from holding Xiamen Hexing Packaging or generate 26.81% 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. China Publishing Media
Performance |
| Timeline |
| Xiamen Hexing Packaging |
| China Publishing Media |
Xiamen Hexing and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Hexing and China Publishing
The main advantage of trading using opposite Xiamen Hexing and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Hexing position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.| Xiamen Hexing vs. Malion New Materials | Xiamen Hexing vs. Western Metal Materials | Xiamen Hexing vs. Super Dragon Engineering Plastics | Xiamen Hexing vs. GRIPM Advanced Materials |
| China Publishing vs. Jiamei Food Packaging | China Publishing vs. New Hope Dairy | China Publishing vs. Beijing Yanjing Brewery | China Publishing vs. Yankershop Food Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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