Correlation Between Guilin Seamild and Xiamen Bank
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By analyzing existing cross correlation between Guilin Seamild Foods and Xiamen Bank Co, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Xiamen Bank.
Diversification Opportunities for Guilin Seamild and Xiamen Bank
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guilin and Xiamen is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank and Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Xiamen Bank go up and down completely randomly.
Pair Corralation between Guilin Seamild and Xiamen Bank
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 1.77 times more return on investment than Xiamen Bank. However, Guilin Seamild is 1.77 times more volatile than Xiamen Bank Co. It trades about 0.12 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.04 per unit of risk. If you would invest 1,253 in Guilin Seamild Foods on October 14, 2024 and sell it today you would earn a total of 268.00 from holding Guilin Seamild Foods or generate 21.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Xiamen Bank Co
Performance |
| Timeline |
| Guilin Seamild Foods |
| Xiamen Bank |
Guilin Seamild and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Xiamen Bank
The main advantage of trading using opposite Guilin Seamild and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Guangzhou Ruoyuchen Information | Guilin Seamild vs. Jinxiandai Information Industry | Guilin Seamild vs. Hangzhou Gisway Information | Guilin Seamild vs. Zoy Home Furnishing |
| Xiamen Bank vs. Suzhou Weizhixiang Food | Xiamen Bank vs. Peoples Insurance of | Xiamen Bank vs. Jiahe Foods Industry | Xiamen Bank vs. Guilin Seamild Foods |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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