Correlation Between XiaMen HongXin and Porton Fine
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Porton Fine Chemicals, you can compare the effects of market volatilities on XiaMen HongXin and Porton Fine 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 Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Porton Fine.
Diversification Opportunities for XiaMen HongXin and Porton Fine
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between XiaMen and Porton is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine Chemicals 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 Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of XiaMen HongXin i.e., XiaMen HongXin and Porton Fine go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Porton Fine
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 1.55 times more return on investment than Porton Fine. However, XiaMen HongXin is 1.55 times more volatile than Porton Fine Chemicals. It trades about 0.06 of its potential returns per unit of risk. Porton Fine Chemicals is currently generating about -0.07 per unit of risk. If you would invest 2,008 in XiaMen HongXin Electron tech on October 30, 2024 and sell it today you would earn a total of 139.00 from holding XiaMen HongXin Electron tech or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Porton Fine Chemicals
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Porton Fine Chemicals |
XiaMen HongXin and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Porton Fine
The main advantage of trading using opposite XiaMen HongXin and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine's long position.| XiaMen HongXin vs. Sportsoul Co Ltd | XiaMen HongXin vs. StarPower Semiconductor | XiaMen HongXin vs. Southchip Semiconductor Technology | XiaMen HongXin vs. Shannon Semiconductor Technology |
| Porton Fine vs. Ming Yang Smart | Porton Fine vs. 159681 | Porton Fine vs. 159005 | Porton Fine vs. Loctek Ergonomic Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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