Correlation Between Integrated Electronic and Xilinmen Furniture
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By analyzing existing cross correlation between Integrated Electronic Systems and Xilinmen Furniture Co, you can compare the effects of market volatilities on Integrated Electronic and Xilinmen Furniture 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 Integrated Electronic with a short position of Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Electronic and Xilinmen Furniture.
Diversification Opportunities for Integrated Electronic and Xilinmen Furniture
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Integrated and Xilinmen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Electronic Systems and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture and Integrated Electronic 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 Integrated Electronic Systems are associated (or correlated) with Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Integrated Electronic i.e., Integrated Electronic and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Integrated Electronic and Xilinmen Furniture
Assuming the 90 days trading horizon Integrated Electronic Systems is expected to generate 1.52 times more return on investment than Xilinmen Furniture. However, Integrated Electronic is 1.52 times more volatile than Xilinmen Furniture Co. It trades about 0.1 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about -0.08 per unit of risk. If you would invest 715.00 in Integrated Electronic Systems on September 13, 2024 and sell it today you would earn a total of 47.00 from holding Integrated Electronic Systems or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Electronic Systems vs. Xilinmen Furniture Co
Performance |
| Timeline |
| Integrated Electronic |
| Xilinmen Furniture |
Integrated Electronic and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Electronic and Xilinmen Furniture
The main advantage of trading using opposite Integrated Electronic and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Electronic position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.| Integrated Electronic vs. Industrial and Commercial | Integrated Electronic vs. Agricultural Bank of | Integrated Electronic vs. China Construction Bank | Integrated Electronic vs. Bank of China |
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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 Valuation module to check real value of public entities based on technical and fundamental data.
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