Correlation Between Xiamen Jihong and Ye Chiu
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By analyzing existing cross correlation between Xiamen Jihong Package and Ye Chiu Metal, you can compare the effects of market volatilities on Xiamen Jihong and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Ye Chiu.
Diversification Opportunities for Xiamen Jihong and Ye Chiu
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiamen and 601388 is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Ye Chiu go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Ye Chiu
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to generate 1.83 times more return on investment than Ye Chiu. However, Xiamen Jihong is 1.83 times more volatile than Ye Chiu Metal. It trades about -0.15 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about -0.28 per unit of risk. If you would invest 1,403 in Xiamen Jihong Package on October 24, 2024 and sell it today you would lose (131.00) from holding Xiamen Jihong Package or give up 9.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Ye Chiu Metal
Performance |
| Timeline |
| Xiamen Jihong Package |
| Ye Chiu Metal |
Xiamen Jihong and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Ye Chiu
The main advantage of trading using opposite Xiamen Jihong and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.| Xiamen Jihong vs. Ye Chiu Metal | Xiamen Jihong vs. Zhongyin Babi Food | Xiamen Jihong vs. V V Food | Xiamen Jihong vs. Zhengzhou Coal Mining |
| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Shandong Gold Mining |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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