Correlation Between Xiamen East and Fujian Newland
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By analyzing existing cross correlation between Xiamen East Asia and Fujian Newland Computer, you can compare the effects of market volatilities on Xiamen East and Fujian Newland 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 East with a short position of Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen East and Fujian Newland.
Diversification Opportunities for Xiamen East and Fujian Newland
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Fujian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen East Asia and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer and Xiamen East 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 East Asia are associated (or correlated) with Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Xiamen East i.e., Xiamen East and Fujian Newland go up and down completely randomly.
Pair Corralation between Xiamen East and Fujian Newland
Assuming the 90 days trading horizon Xiamen East Asia is expected to under-perform the Fujian Newland. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen East Asia is 1.5 times less risky than Fujian Newland. The stock trades about -0.13 of its potential returns per unit of risk. The Fujian Newland Computer is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,788 in Fujian Newland Computer on August 28, 2024 and sell it today you would earn a total of 150.00 from holding Fujian Newland Computer or generate 8.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen East Asia vs. Fujian Newland Computer
Performance |
| Timeline |
| Xiamen East Asia |
| Fujian Newland Computer |
Xiamen East and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen East and Fujian Newland
The main advantage of trading using opposite Xiamen East and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen East position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Xiamen East vs. Yili Chuanning Biotechnology | Xiamen East vs. Shandong Polymer Biochemicals | Xiamen East vs. Henan Shuanghui Investment | Xiamen East vs. Maccura Biotechnology Co |
| Fujian Newland vs. Agricultural Bank of | Fujian Newland vs. Industrial and Commercial | Fujian Newland vs. Bank of China | Fujian Newland vs. PetroChina Co Ltd |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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