Correlation Between Xiamen East and Hunan Nanling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen East Asia and Hunan Nanling Industrial, you can compare the effects of market volatilities on Xiamen East and Hunan Nanling 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 Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen East and Hunan Nanling.
Diversification Opportunities for Xiamen East and Hunan Nanling
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Hunan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen East Asia and Hunan Nanling Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Nanling Industrial 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 Hunan Nanling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Nanling Industrial has no effect on the direction of Xiamen East i.e., Xiamen East and Hunan Nanling go up and down completely randomly.
Pair Corralation between Xiamen East and Hunan Nanling
Assuming the 90 days trading horizon Xiamen East Asia is expected to generate 1.09 times more return on investment than Hunan Nanling. However, Xiamen East is 1.09 times more volatile than Hunan Nanling Industrial. It trades about 0.02 of its potential returns per unit of risk. Hunan Nanling Industrial is currently generating about 0.01 per unit of risk. If you would invest 997.00 in Xiamen East Asia on August 28, 2024 and sell it today you would earn a total of 76.00 from holding Xiamen East Asia or generate 7.62% 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. Hunan Nanling Industrial
Performance |
| Timeline |
| Xiamen East Asia |
| Hunan Nanling Industrial |
Xiamen East and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen East and Hunan Nanling
The main advantage of trading using opposite Xiamen East and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen East position performs unexpectedly, Hunan Nanling 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 Nanling will offset losses from the drop in Hunan Nanling's long position.| Xiamen East vs. Jinhui Mining Co | Xiamen East vs. Zhengzhou Coal Mining | Xiamen East vs. Bus Online Co | Xiamen East vs. Xiangyang Automobile Bearing |
| Hunan Nanling vs. Bomin Electronics Co | Hunan Nanling vs. Aurora Optoelectronics Co | Hunan Nanling vs. TongFu Microelectronics Co | Hunan Nanling vs. Wuhan Yangtze Communication |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |