Correlation Between 159005 and Xiamen East
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By analyzing existing cross correlation between 159005 and Xiamen East Asia, you can compare the effects of market volatilities on 159005 and Xiamen East 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 159005 with a short position of Xiamen East. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Xiamen East.
Diversification Opportunities for 159005 and Xiamen East
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 159005 and Xiamen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Xiamen East Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen East Asia and 159005 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 159005 are associated (or correlated) with Xiamen East. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen East Asia has no effect on the direction of 159005 i.e., 159005 and Xiamen East go up and down completely randomly.
Pair Corralation between 159005 and Xiamen East
Assuming the 90 days trading horizon 159005 is expected to generate 21.32 times less return on investment than Xiamen East. But when comparing it to its historical volatility, 159005 is 126.01 times less risky than Xiamen East. It trades about 0.13 of its potential returns per unit of risk. Xiamen East Asia is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 941.00 in Xiamen East Asia on August 24, 2024 and sell it today you would earn a total of 114.00 from holding Xiamen East Asia or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Xiamen East Asia
Performance |
| Timeline |
| 159005 |
| Xiamen East Asia |
159005 and Xiamen East Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Xiamen East
The main advantage of trading using opposite 159005 and Xiamen East positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, Xiamen East 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 East will offset losses from the drop in Xiamen East's long position.| 159005 vs. Shenzhen MTC Co | 159005 vs. Ming Yang Smart | 159005 vs. Changzhou Almaden Co | 159005 vs. Loctek Ergonomic Technology |
| Xiamen East vs. Chengtun Mining Group | Xiamen East vs. Anhui Deli Household | Xiamen East vs. Sichuan Yahua Industrial | Xiamen East vs. Offshore Oil Engineering |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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