Correlation Between XiaMen HongXin and Guangzhou Seagull
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on XiaMen HongXin and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Guangzhou Seagull.
Diversification Opportunities for XiaMen HongXin and Guangzhou Seagull
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between XiaMen and Guangzhou is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of XiaMen HongXin i.e., XiaMen HongXin and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Guangzhou Seagull
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 1.63 times more return on investment than Guangzhou Seagull. However, XiaMen HongXin is 1.63 times more volatile than Guangzhou Seagull Kitchen. It trades about 0.05 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about -0.02 per unit of risk. If you would invest 2,321 in XiaMen HongXin Electron tech on October 23, 2024 and sell it today you would earn a total of 77.00 from holding XiaMen HongXin Electron tech or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Guangzhou Seagull Kitchen |
XiaMen HongXin and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Guangzhou Seagull
The main advantage of trading using opposite XiaMen HongXin and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| XiaMen HongXin vs. Chinese Universe Publishing | XiaMen HongXin vs. Changjiang Publishing Media | XiaMen HongXin vs. Uxi Unicomp Technology | XiaMen HongXin vs. Southern PublishingMedia Co |
| Guangzhou Seagull vs. Shandong Homey Aquatic | Guangzhou Seagull vs. Ziel Home Furnishing | Guangzhou Seagull vs. Luyin Investment Group | Guangzhou Seagull vs. Kunwu Jiuding Investment |
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.
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