Correlation Between Guangdong Wens and Xiamen Bank
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Xiamen Bank Co, you can compare the effects of market volatilities on Guangdong Wens 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 Guangdong Wens with a short position of Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Xiamen Bank.
Diversification Opportunities for Guangdong Wens and Xiamen Bank
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangdong and Xiamen is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 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 Guangdong Wens i.e., Guangdong Wens and Xiamen Bank go up and down completely randomly.
Pair Corralation between Guangdong Wens and Xiamen Bank
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Xiamen Bank. In addition to that, Guangdong Wens is 1.31 times more volatile than Xiamen Bank Co. It trades about -0.03 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.03 per unit of volatility. If you would invest 501.00 in Xiamen Bank Co on October 14, 2024 and sell it today you would earn a total of 29.00 from holding Xiamen Bank Co or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Xiamen Bank Co
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Xiamen Bank |
Guangdong Wens and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Xiamen Bank
The main advantage of trading using opposite Guangdong Wens and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens 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.| Guangdong Wens vs. Digiwin Software Co | Guangdong Wens vs. Gansu Huangtai Wine marketing | Guangdong Wens vs. Glodon Software Co | Guangdong Wens vs. Fujian Boss Software |
| Xiamen Bank vs. JiShi Media Co | Xiamen Bank vs. Zhejiang Qianjiang Motorcycle | Xiamen Bank vs. Guangdong Jinma Entertainment | Xiamen Bank vs. Thinkingdom Media Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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