Correlation Between Westone Information and Xiamen CD
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By analyzing existing cross correlation between Westone Information Industry and Xiamen CD, you can compare the effects of market volatilities on Westone Information and Xiamen CD 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 Westone Information with a short position of Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westone Information and Xiamen CD.
Diversification Opportunities for Westone Information and Xiamen CD
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Westone and Xiamen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Westone Information Industry and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD and Westone Information 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 Westone Information Industry are associated (or correlated) with Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Westone Information i.e., Westone Information and Xiamen CD go up and down completely randomly.
Pair Corralation between Westone Information and Xiamen CD
Assuming the 90 days trading horizon Westone Information Industry is expected to under-perform the Xiamen CD. In addition to that, Westone Information is 1.32 times more volatile than Xiamen CD. It trades about -0.04 of its total potential returns per unit of risk. Xiamen CD is currently generating about 0.0 per unit of volatility. If you would invest 1,020 in Xiamen CD on September 1, 2024 and sell it today you would lose (40.00) from holding Xiamen CD or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westone Information Industry vs. Xiamen CD
Performance |
| Timeline |
| Westone Information |
| Xiamen CD |
Westone Information and Xiamen CD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westone Information and Xiamen CD
The main advantage of trading using opposite Westone Information and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westone Information position performs unexpectedly, Xiamen CD 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 CD will offset losses from the drop in Xiamen CD's long position.| Westone Information vs. Cultural Investment Holdings | Westone Information vs. Gome Telecom Equipment | Westone Information vs. Bus Online Co | Westone Information vs. Holitech Technology Co |
| Xiamen CD vs. Lander Sports Development | Xiamen CD vs. Sportsoul Co Ltd | Xiamen CD vs. Zhejiang Daily Media | Xiamen CD vs. Inly Media 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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