Correlation Between Der International and Xilinmen Furniture
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By analyzing existing cross correlation between Der International Home and Xilinmen Furniture Co, you can compare the effects of market volatilities on Der International 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 Der International with a short position of Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and Xilinmen Furniture.
Diversification Opportunities for Der International and Xilinmen Furniture
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Der and Xilinmen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Der International Home and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture and Der International 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 Der International Home 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 Der International i.e., Der International and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Der International and Xilinmen Furniture
Assuming the 90 days trading horizon Der International Home is expected to generate 1.14 times more return on investment than Xilinmen Furniture. However, Der International is 1.14 times more volatile than Xilinmen Furniture Co. It trades about 0.21 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about 0.0 per unit of risk. If you would invest 456.00 in Der International Home on September 4, 2024 and sell it today you would earn a total of 62.00 from holding Der International Home or generate 13.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Der International Home vs. Xilinmen Furniture Co
Performance |
| Timeline |
| Der International Home |
| Xilinmen Furniture |
Der International and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Der International and Xilinmen Furniture
The main advantage of trading using opposite Der International and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International 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.| Der International vs. Agricultural Bank of | Der International vs. Industrial and Commercial | Der International vs. Bank of China | Der International vs. China Construction Bank |
| Xilinmen Furniture vs. Industrial and Commercial | Xilinmen Furniture vs. Agricultural Bank of | Xilinmen Furniture vs. China Construction Bank | Xilinmen Furniture vs. Bank of China |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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