Correlation Between Xiamen Jihong and Guangdong Wens
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By analyzing existing cross correlation between Xiamen Jihong Package and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Xiamen Jihong and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Guangdong Wens.
Diversification Opportunities for Xiamen Jihong and Guangdong Wens
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Guangdong is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Guangdong Wens go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Guangdong Wens
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to under-perform the Guangdong Wens. In addition to that, Xiamen Jihong is 1.45 times more volatile than Guangdong Wens Foodstuff. It trades about -0.03 of its total potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about 0.0 per unit of volatility. If you would invest 1,850 in Guangdong Wens Foodstuff on September 14, 2024 and sell it today you would lose (106.00) from holding Guangdong Wens Foodstuff or give up 5.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Xiamen Jihong Package |
| Guangdong Wens Foodstuff |
Xiamen Jihong and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Guangdong Wens
The main advantage of trading using opposite Xiamen Jihong and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' 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 |
| Guangdong Wens vs. Nanjing Putian Telecommunications | Guangdong Wens vs. Tianjin Realty Development | Guangdong Wens vs. Kangyue Technology Co | Guangdong Wens vs. Shenzhen Hifuture Electric |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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