Correlation Between Shenzhen Changfang and Xiamen Bank
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By analyzing existing cross correlation between Shenzhen Changfang Light and Xiamen Bank Co, you can compare the effects of market volatilities on Shenzhen Changfang 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 Shenzhen Changfang with a short position of Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Changfang and Xiamen Bank.
Diversification Opportunities for Shenzhen Changfang and Xiamen Bank
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Xiamen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Changfang Light and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank and Shenzhen Changfang 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 Shenzhen Changfang Light 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 Shenzhen Changfang i.e., Shenzhen Changfang and Xiamen Bank go up and down completely randomly.
Pair Corralation between Shenzhen Changfang and Xiamen Bank
Assuming the 90 days trading horizon Shenzhen Changfang is expected to generate 1.85 times less return on investment than Xiamen Bank. In addition to that, Shenzhen Changfang is 1.87 times more volatile than Xiamen Bank Co. It trades about 0.02 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.08 per unit of volatility. If you would invest 545.00 in Xiamen Bank Co on November 3, 2024 and sell it today you would earn a total of 10.00 from holding Xiamen Bank Co or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Changfang Light vs. Xiamen Bank Co
Performance |
| Timeline |
| Shenzhen Changfang Light |
| Xiamen Bank |
Shenzhen Changfang and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Changfang and Xiamen Bank
The main advantage of trading using opposite Shenzhen Changfang and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Changfang 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.| Shenzhen Changfang vs. Ningbo Ligong Online | Shenzhen Changfang vs. China Mobile Limited | Shenzhen Changfang vs. Hainan Haiqi Transportation | Shenzhen Changfang vs. Guangxi Wuzhou Communications |
| Xiamen Bank vs. Omnijoi Media Corp | Xiamen Bank vs. Heilongjiang Publishing Media | Xiamen Bank vs. Duzhe Publishing Media | Xiamen Bank vs. Mango Excellent Media |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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