Correlation Between HeNan Splendor and Xiamen CD
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By analyzing existing cross correlation between HeNan Splendor Science and Xiamen CD, you can compare the effects of market volatilities on HeNan Splendor 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 HeNan Splendor with a short position of Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Xiamen CD.
Diversification Opportunities for HeNan Splendor and Xiamen CD
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HeNan and Xiamen is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD and HeNan Splendor 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 HeNan Splendor Science 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 HeNan Splendor i.e., HeNan Splendor and Xiamen CD go up and down completely randomly.
Pair Corralation between HeNan Splendor and Xiamen CD
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 2.05 times more return on investment than Xiamen CD. However, HeNan Splendor is 2.05 times more volatile than Xiamen CD. It trades about 0.06 of its potential returns per unit of risk. Xiamen CD is currently generating about 0.04 per unit of risk. If you would invest 1,089 in HeNan Splendor Science on January 1, 2025 and sell it today you would earn a total of 27.00 from holding HeNan Splendor Science or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Xiamen CD
Performance |
| Timeline |
| HeNan Splendor Science |
| Xiamen CD |
HeNan Splendor and Xiamen CD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Xiamen CD
The main advantage of trading using opposite HeNan Splendor and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor 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.| HeNan Splendor vs. Andon Health Co | HeNan Splendor vs. Dezhan HealthCare Co | HeNan Splendor vs. JCHX Mining Management | HeNan Splendor vs. Cicc Fund Management |
| Xiamen CD vs. Kunwu Jiuding Investment | Xiamen CD vs. Jointo Energy Investment | Xiamen CD vs. Shengda Mining Co | Xiamen CD vs. Inner Mongolia Xingye |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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