Correlation Between Der International and Xiamen Goldenhome
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By analyzing existing cross correlation between Der International Home and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Der International and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and Xiamen Goldenhome.
Diversification Opportunities for Der International and Xiamen Goldenhome
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Der and Xiamen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Der International Home and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Der International i.e., Der International and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Der International and Xiamen Goldenhome
Assuming the 90 days trading horizon Der International Home is expected to under-perform the Xiamen Goldenhome. In addition to that, Der International is 1.83 times more volatile than Xiamen Goldenhome Co. It trades about -0.13 of its total potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.14 per unit of volatility. If you would invest 2,120 in Xiamen Goldenhome Co on October 26, 2024 and sell it today you would lose (133.00) from holding Xiamen Goldenhome Co or give up 6.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Der International Home vs. Xiamen Goldenhome Co
Performance |
| Timeline |
| Der International Home |
| Xiamen Goldenhome |
Der International and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Der International and Xiamen Goldenhome
The main advantage of trading using opposite Der International and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International position performs unexpectedly, Xiamen Goldenhome 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 Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| Der International vs. Beijing Seeyon Internet | Der International vs. Kuang Chi Technologies | Der International vs. Tongxing Environmental Protection | Der International vs. Cansino Biologics |
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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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