Correlation Between XiaMen HongXin and Eastroc Beverage
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Eastroc Beverage Group, you can compare the effects of market volatilities on XiaMen HongXin and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Eastroc Beverage.
Diversification Opportunities for XiaMen HongXin and Eastroc Beverage
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between XiaMen and Eastroc is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of XiaMen HongXin i.e., XiaMen HongXin and Eastroc Beverage go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Eastroc Beverage
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 1.89 times more return on investment than Eastroc Beverage. However, XiaMen HongXin is 1.89 times more volatile than Eastroc Beverage Group. It trades about 0.0 of its potential returns per unit of risk. Eastroc Beverage Group is currently generating about -0.02 per unit of risk. If you would invest 2,212 in XiaMen HongXin Electron tech on November 3, 2024 and sell it today you would lose (65.00) from holding XiaMen HongXin Electron tech or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Eastroc Beverage Group
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Eastroc Beverage |
XiaMen HongXin and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Eastroc Beverage
The main advantage of trading using opposite XiaMen HongXin and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage's long position.| XiaMen HongXin vs. Do Fluoride Chemicals Co | XiaMen HongXin vs. Porton Fine Chemicals | XiaMen HongXin vs. Techshine Electronics Co | XiaMen HongXin vs. Xinya Electronic Co |
| Eastroc Beverage vs. Zhongshan Broad Ocean Motor | Eastroc Beverage vs. Ningbo Tech Bank Co | Eastroc Beverage vs. Qilu Bank Co | Eastroc Beverage vs. China Everbright Bank |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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