Correlation Between VT Industrial and Xiamen Bank
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By analyzing existing cross correlation between VT Industrial Technology and Xiamen Bank Co, you can compare the effects of market volatilities on VT Industrial and Xiamen Bank 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 VT Industrial with a short position of Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of VT Industrial and Xiamen Bank.
Diversification Opportunities for VT Industrial and Xiamen Bank
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 300707 and Xiamen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding VT Industrial Technology and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank and VT Industrial 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 VT Industrial Technology are associated (or correlated) with Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of VT Industrial i.e., VT Industrial and Xiamen Bank go up and down completely randomly.
Pair Corralation between VT Industrial and Xiamen Bank
Assuming the 90 days trading horizon VT Industrial Technology is expected to generate 2.94 times more return on investment than Xiamen Bank. However, VT Industrial is 2.94 times more volatile than Xiamen Bank Co. It trades about 0.03 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.03 per unit of risk. If you would invest 1,472 in VT Industrial Technology on September 14, 2024 and sell it today you would earn a total of 361.00 from holding VT Industrial Technology or generate 24.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
VT Industrial Technology vs. Xiamen Bank Co
Performance |
| Timeline |
| VT Industrial Technology |
| Xiamen Bank |
VT Industrial and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VT Industrial and Xiamen Bank
The main advantage of trading using opposite VT Industrial and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VT Industrial position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.| VT Industrial vs. Xiamen Bank Co | VT Industrial vs. Peoples Insurance of | VT Industrial vs. Vohringer Home Technology | VT Industrial vs. Agricultural Bank of |
| Xiamen Bank vs. Kingclean Electric Co | Xiamen Bank vs. Shenzhen Bioeasy Biotechnology | Xiamen Bank vs. Maxvision Technology Corp | Xiamen Bank vs. Xizi Clean Energy |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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