Correlation Between XiaMen HongXin and Tianjin Hi
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Tianjin Hi Tech Development, you can compare the effects of market volatilities on XiaMen HongXin and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Tianjin Hi.
Diversification Opportunities for XiaMen HongXin and Tianjin Hi
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XiaMen and Tianjin is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of XiaMen HongXin i.e., XiaMen HongXin and Tianjin Hi go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Tianjin Hi
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 1.29 times more return on investment than Tianjin Hi. However, XiaMen HongXin is 1.29 times more volatile than Tianjin Hi Tech Development. It trades about 0.04 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about -0.01 per unit of risk. If you would invest 1,537 in XiaMen HongXin Electron tech on October 16, 2024 and sell it today you would earn a total of 580.00 from holding XiaMen HongXin Electron tech or generate 37.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Tianjin Hi Tech |
XiaMen HongXin and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Tianjin Hi
The main advantage of trading using opposite XiaMen HongXin and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| XiaMen HongXin vs. China Minmetals Rare | XiaMen HongXin vs. Chengtun Mining Group | XiaMen HongXin vs. Jiugui Liquor Co | XiaMen HongXin vs. Xinjiang Baodi Mining |
| Tianjin Hi vs. Eastroc Beverage Group | Tianjin Hi vs. V V Food | Tianjin Hi vs. XiaMen HongXin Electron tech | Tianjin Hi vs. Linewell Software Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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