Correlation Between Xiamen Jihong and Gan Yuan
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By analyzing existing cross correlation between Xiamen Jihong Package and Gan Yuan Foods, you can compare the effects of market volatilities on Xiamen Jihong and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Gan Yuan.
Diversification Opportunities for Xiamen Jihong and Gan Yuan
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Gan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Gan Yuan go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Gan Yuan
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to generate 1.47 times more return on investment than Gan Yuan. However, Xiamen Jihong is 1.47 times more volatile than Gan Yuan Foods. It trades about 0.16 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.09 per unit of risk. If you would invest 1,419 in Xiamen Jihong Package on September 5, 2024 and sell it today you would earn a total of 156.00 from holding Xiamen Jihong Package or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Gan Yuan Foods
Performance |
| Timeline |
| Xiamen Jihong Package |
| Gan Yuan Foods |
Xiamen Jihong and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Gan Yuan
The main advantage of trading using opposite Xiamen Jihong and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong vs. Rongsheng Petrochemical Co |
| Gan Yuan vs. Nanjing Putian Telecommunications | Gan Yuan vs. Inspur Software Co | Gan Yuan vs. Suzhou Mingzhi Technology | Gan Yuan vs. Guangzhou Haige Communications |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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