Correlation Between Guangdong Wens and Xiamen Jihong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Wens Foodstuff and Xiamen Jihong Package, you can compare the effects of market volatilities on Guangdong Wens and Xiamen Jihong 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 Guangdong Wens with a short position of Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Xiamen Jihong.
Diversification Opportunities for Guangdong Wens and Xiamen Jihong
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Xiamen is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package and Guangdong Wens 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 Guangdong Wens Foodstuff are associated (or correlated) with Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Guangdong Wens i.e., Guangdong Wens and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Guangdong Wens and Xiamen Jihong
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to generate 0.69 times more return on investment than Xiamen Jihong. However, Guangdong Wens Foodstuff is 1.45 times less risky than Xiamen Jihong. It trades about 0.0 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about -0.03 per unit of risk. If you would invest 1,850 in Guangdong Wens Foodstuff on September 14, 2024 and sell it today you would lose (106.00) from holding Guangdong Wens Foodstuff or give up 5.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Xiamen Jihong Package
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Xiamen Jihong Package |
Guangdong Wens and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Xiamen Jihong
The main advantage of trading using opposite Guangdong Wens and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens position performs unexpectedly, Xiamen Jihong 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 Jihong will offset losses from the drop in Xiamen Jihong's long position.| Guangdong Wens vs. Nanjing Putian Telecommunications | Guangdong Wens vs. Tianjin Realty Development | Guangdong Wens vs. Kangyue Technology Co | Guangdong Wens vs. Shenzhen Hifuture Electric |
| Xiamen Jihong vs. Zijin Mining Group | Xiamen Jihong vs. Wanhua Chemical Group | Xiamen Jihong vs. Baoshan Iron Steel | Xiamen Jihong 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |