Correlation Between Chengdu Spaceon and Xiamen Bank
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Xiamen Bank Co, you can compare the effects of market volatilities on Chengdu Spaceon and Xiamen Bank 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 Chengdu Spaceon with a short position of Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Xiamen Bank.
Diversification Opportunities for Chengdu Spaceon and Xiamen Bank
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Xiamen is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank and Chengdu Spaceon 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 Chengdu Spaceon Electronics are associated (or correlated) with Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and Xiamen Bank go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Xiamen Bank
Assuming the 90 days trading horizon Chengdu Spaceon is expected to generate 28.41 times less return on investment than Xiamen Bank. In addition to that, Chengdu Spaceon is 1.27 times more volatile than Xiamen Bank Co. It trades about 0.01 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.2 per unit of volatility. If you would invest 529.00 in Xiamen Bank Co on September 5, 2024 and sell it today you would earn a total of 47.00 from holding Xiamen Bank Co or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Xiamen Bank Co
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Xiamen Bank |
Chengdu Spaceon and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Xiamen Bank
The main advantage of trading using opposite Chengdu Spaceon and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| Chengdu Spaceon vs. New Hope Dairy | Chengdu Spaceon vs. Great Sun Foods Co | Chengdu Spaceon vs. Jiaozuo Wanfang Aluminum | Chengdu Spaceon vs. Suzhou Weizhixiang Food |
| Xiamen Bank vs. Jiangsu Jinling Sports | Xiamen Bank vs. Everdisplay Optronics Shanghai | Xiamen Bank vs. Chengdu Spaceon Electronics | Xiamen Bank vs. CICC Fund Management |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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