Correlation Between XiaMen HongXin and Hunan Tyen
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Hunan Tyen Machinery, you can compare the effects of market volatilities on XiaMen HongXin and Hunan Tyen 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 Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Hunan Tyen.
Diversification Opportunities for XiaMen HongXin and Hunan Tyen
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between XiaMen and Hunan is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen Machinery 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 Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of XiaMen HongXin i.e., XiaMen HongXin and Hunan Tyen go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Hunan Tyen
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 1.18 times more return on investment than Hunan Tyen. However, XiaMen HongXin is 1.18 times more volatile than Hunan Tyen Machinery. It trades about 0.06 of its potential returns per unit of risk. Hunan Tyen Machinery is currently generating about 0.01 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. Hunan Tyen Machinery
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Hunan Tyen Machinery |
XiaMen HongXin and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Hunan Tyen
The main advantage of trading using opposite XiaMen HongXin and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen'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 |
| Hunan Tyen vs. Industrial and Commercial | Hunan Tyen vs. China Construction Bank | Hunan Tyen vs. Bank of China | Hunan Tyen vs. Agricultural Bank of |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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