Correlation Between Xiamen Jihong and Chinese Universe
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By analyzing existing cross correlation between Xiamen Jihong Package and Chinese Universe Publishing, you can compare the effects of market volatilities on Xiamen Jihong and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Chinese Universe.
Diversification Opportunities for Xiamen Jihong and Chinese Universe
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Chinese is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Chinese Universe go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Chinese Universe
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to generate 1.85 times more return on investment than Chinese Universe. However, Xiamen Jihong is 1.85 times more volatile than Chinese Universe Publishing. It trades about 0.21 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.26 per unit of risk. If you would invest 1,286 in Xiamen Jihong Package on November 28, 2024 and sell it today you would earn a total of 84.00 from holding Xiamen Jihong Package or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Chinese Universe Publishing
Performance |
| Timeline |
| Xiamen Jihong Package |
| Chinese Universe Pub |
Xiamen Jihong and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Chinese Universe
The main advantage of trading using opposite Xiamen Jihong and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Xiamen Jihong vs. Penyao Environmental Protection | Xiamen Jihong vs. Hubei Forbon Technology | Xiamen Jihong vs. Uxi Unicomp Technology | Xiamen Jihong vs. ROPEOK Technology Group |
| Chinese Universe vs. Shuhua Sports Co | Chinese Universe vs. Heilongjiang Transport Development | Chinese Universe vs. SI TECH Information Technology | Chinese Universe vs. Jiangsu Jinling Sports |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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