Correlation Between Xiamen Jihong and ChengDu Hi
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By analyzing existing cross correlation between Xiamen Jihong Package and ChengDu Hi Tech Development, you can compare the effects of market volatilities on Xiamen Jihong and ChengDu Hi 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 Xiamen Jihong with a short position of ChengDu Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and ChengDu Hi.
Diversification Opportunities for Xiamen Jihong and ChengDu Hi
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xiamen and ChengDu is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and ChengDu Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChengDu Hi Tech and Xiamen Jihong 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 Xiamen Jihong Package are associated (or correlated) with ChengDu Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChengDu Hi Tech has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and ChengDu Hi go up and down completely randomly.
Pair Corralation between Xiamen Jihong and ChengDu Hi
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to under-perform the ChengDu Hi. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Jihong Package is 1.56 times less risky than ChengDu Hi. The stock trades about -0.04 of its potential returns per unit of risk. The ChengDu Hi Tech Development is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,534 in ChengDu Hi Tech Development on October 12, 2024 and sell it today you would earn a total of 3,497 from holding ChengDu Hi Tech Development or generate 227.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. ChengDu Hi Tech Development
Performance |
| Timeline |
| Xiamen Jihong Package |
| ChengDu Hi Tech |
Xiamen Jihong and ChengDu Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and ChengDu Hi
The main advantage of trading using opposite Xiamen Jihong and ChengDu Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, ChengDu Hi 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 ChengDu Hi will offset losses from the drop in ChengDu Hi's long position.| Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong vs. Shandong Gold Mining |
| ChengDu Hi vs. China Reform Health | ChengDu Hi vs. Shandong Sinoglory Health | ChengDu Hi vs. Xiamen Jihong Package | ChengDu Hi vs. Humanwell Healthcare Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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