Correlation Between Xiamen Jihong and Hithink RoyalFlush
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By analyzing existing cross correlation between Xiamen Jihong Package and Hithink RoyalFlush Info, you can compare the effects of market volatilities on Xiamen Jihong and Hithink RoyalFlush 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 Hithink RoyalFlush. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Hithink RoyalFlush.
Diversification Opportunities for Xiamen Jihong and Hithink RoyalFlush
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Hithink is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Hithink RoyalFlush Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hithink RoyalFlush Info 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 Hithink RoyalFlush. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hithink RoyalFlush Info has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Hithink RoyalFlush go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Hithink RoyalFlush
If you would invest 25,285 in Hithink RoyalFlush Info on November 7, 2024 and sell it today you would earn a total of 2,628 from holding Hithink RoyalFlush Info or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.88% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Hithink RoyalFlush Info
Performance |
| Timeline |
| Xiamen Jihong Package |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Hithink RoyalFlush Info |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Xiamen Jihong and Hithink RoyalFlush Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Hithink RoyalFlush
The main advantage of trading using opposite Xiamen Jihong and Hithink RoyalFlush positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Hithink RoyalFlush 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 Hithink RoyalFlush will offset losses from the drop in Hithink RoyalFlush's long position.The idea behind Xiamen Jihong Package and Hithink RoyalFlush Info pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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