Correlation Between Xiamen Jihong and Anhui Tongguan
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By analyzing existing cross correlation between Xiamen Jihong Package and Anhui Tongguan Copper, you can compare the effects of market volatilities on Xiamen Jihong and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Anhui Tongguan.
Diversification Opportunities for Xiamen Jihong and Anhui Tongguan
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Anhui is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Anhui Tongguan
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to generate 0.76 times more return on investment than Anhui Tongguan. However, Xiamen Jihong Package is 1.31 times less risky than Anhui Tongguan. It trades about 0.2 of its potential returns per unit of risk. Anhui Tongguan Copper is currently generating about 0.1 per unit of risk. If you would invest 1,189 in Xiamen Jihong Package on November 5, 2024 and sell it today you would earn a total of 97.00 from holding Xiamen Jihong Package or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Anhui Tongguan Copper
Performance |
| Timeline |
| Xiamen Jihong Package |
| Anhui Tongguan Copper |
Xiamen Jihong and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Anhui Tongguan
The main advantage of trading using opposite Xiamen Jihong and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Xiamen Jihong vs. Konfoong Materials International | Xiamen Jihong vs. Fiberhome Telecommunication Technologies | Xiamen Jihong vs. Dongfeng Automobile Co | Xiamen Jihong vs. GRIPM Advanced Materials |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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