Correlation Between XiaMen HongXin and Soyea Technology
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Soyea Technology Co, you can compare the effects of market volatilities on XiaMen HongXin and Soyea Technology 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 XiaMen HongXin with a short position of Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Soyea Technology.
Diversification Opportunities for XiaMen HongXin and Soyea Technology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XiaMen and Soyea is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology and XiaMen HongXin 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 XiaMen HongXin Electron tech are associated (or correlated) with Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of XiaMen HongXin i.e., XiaMen HongXin and Soyea Technology go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Soyea Technology
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 1.59 times more return on investment than Soyea Technology. However, XiaMen HongXin is 1.59 times more volatile than Soyea Technology Co. It trades about 0.04 of its potential returns per unit of risk. Soyea Technology Co is currently generating about -0.04 per unit of risk. If you would invest 1,342 in XiaMen HongXin Electron tech on October 13, 2024 and sell it today you would earn a total of 599.00 from holding XiaMen HongXin Electron tech or generate 44.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Soyea Technology Co
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Soyea Technology |
XiaMen HongXin and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Soyea Technology
The main advantage of trading using opposite XiaMen HongXin and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| XiaMen HongXin vs. Soyea Technology Co | XiaMen HongXin vs. East Money Information | XiaMen HongXin vs. ButOne Information Corp | XiaMen HongXin vs. 360 Security Technology |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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