Correlation Between XiaMen HongXin and Emdoor Information
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Emdoor Information Co, you can compare the effects of market volatilities on XiaMen HongXin and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Emdoor Information.
Diversification Opportunities for XiaMen HongXin and Emdoor Information
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XiaMen and Emdoor is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of XiaMen HongXin i.e., XiaMen HongXin and Emdoor Information go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Emdoor Information
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 1.06 times more return on investment than Emdoor Information. However, XiaMen HongXin is 1.06 times more volatile than Emdoor Information Co. It trades about 0.05 of its potential returns per unit of risk. Emdoor Information Co is currently generating about 0.01 per unit of risk. If you would invest 1,189 in XiaMen HongXin Electron tech on October 18, 2024 and sell it today you would earn a total of 886.00 from holding XiaMen HongXin Electron tech or generate 74.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.51% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Emdoor Information Co
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Emdoor Information |
XiaMen HongXin and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Emdoor Information
The main advantage of trading using opposite XiaMen HongXin and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.| XiaMen HongXin vs. Unisplendour Corp | XiaMen HongXin vs. Shenwu Energy Saving | XiaMen HongXin vs. Ping An Insurance | XiaMen HongXin vs. Hua Xia Bank |
| Emdoor Information vs. Guangxi Wuzhou Communications | Emdoor Information vs. Xizi Clean Energy | Emdoor Information vs. Hainan Airlines Co | Emdoor Information vs. Shaanxi Meineng Clean |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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