Correlation Between Hunan Mendale and Xinxiang Chemical
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Xinxiang Chemical Fiber, you can compare the effects of market volatilities on Hunan Mendale and Xinxiang Chemical 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 Hunan Mendale with a short position of Xinxiang Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Xinxiang Chemical.
Diversification Opportunities for Hunan Mendale and Xinxiang Chemical
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Xinxiang is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Xinxiang Chemical Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinxiang Chemical Fiber and Hunan Mendale 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 Hunan Mendale Hometextile are associated (or correlated) with Xinxiang Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinxiang Chemical Fiber has no effect on the direction of Hunan Mendale i.e., Hunan Mendale and Xinxiang Chemical go up and down completely randomly.
Pair Corralation between Hunan Mendale and Xinxiang Chemical
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 2.51 times more return on investment than Xinxiang Chemical. However, Hunan Mendale is 2.51 times more volatile than Xinxiang Chemical Fiber. It trades about -0.02 of its potential returns per unit of risk. Xinxiang Chemical Fiber is currently generating about -0.34 per unit of risk. If you would invest 328.00 in Hunan Mendale Hometextile on October 16, 2024 and sell it today you would lose (24.00) from holding Hunan Mendale Hometextile or give up 7.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Xinxiang Chemical Fiber
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Xinxiang Chemical Fiber |
Hunan Mendale and Xinxiang Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Xinxiang Chemical
The main advantage of trading using opposite Hunan Mendale and Xinxiang Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale position performs unexpectedly, Xinxiang Chemical 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 Xinxiang Chemical will offset losses from the drop in Xinxiang Chemical's long position.| Hunan Mendale vs. Inspur Software Co | Hunan Mendale vs. Digiwin Software Co | Hunan Mendale vs. ROPEOK Technology Group | Hunan Mendale vs. Shuhua Sports Co |
| Xinxiang Chemical vs. Anji Foodstuff Co | Xinxiang Chemical vs. Nexchip Semiconductor Corp | Xinxiang Chemical vs. JuneYao Dairy Co | Xinxiang Chemical vs. Guangdong Marubi Biotechnology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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