Correlation Between Guangdong Qunxing and Xilinmen Furniture
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Qunxing Toys and Xilinmen Furniture Co, you can compare the effects of market volatilities on Guangdong Qunxing 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 Guangdong Qunxing with a short position of Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Xilinmen Furniture.
Diversification Opportunities for Guangdong Qunxing and Xilinmen Furniture
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Xilinmen is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture and Guangdong Qunxing 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 Guangdong Qunxing Toys 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 Guangdong Qunxing i.e., Guangdong Qunxing and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Xilinmen Furniture
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 1.47 times more return on investment than Xilinmen Furniture. However, Guangdong Qunxing is 1.47 times more volatile than Xilinmen Furniture Co. It trades about 0.05 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about 0.01 per unit of risk. If you would invest 582.00 in Guangdong Qunxing Toys on September 14, 2024 and sell it today you would earn a total of 215.00 from holding Guangdong Qunxing Toys or generate 36.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Xilinmen Furniture Co
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Xilinmen Furniture |
Guangdong Qunxing and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Xilinmen Furniture
The main advantage of trading using opposite Guangdong Qunxing and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing 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.| Guangdong Qunxing vs. Ye Chiu Metal | Guangdong Qunxing vs. Zhejiang Yayi Metal | Guangdong Qunxing vs. Wuhan Yangtze Communication | Guangdong Qunxing vs. Shengda Mining Co |
| Xilinmen Furniture vs. Western Metal Materials | Xilinmen Furniture vs. Xinjiang Communications Construction | Xilinmen Furniture vs. Guangdong Qunxing Toys | Xilinmen Furniture vs. Hainan Airlines 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |