Correlation Between Xiamen East and Jiangsu Seagull
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By analyzing existing cross correlation between Xiamen East Asia and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Xiamen East and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen East and Jiangsu Seagull.
Diversification Opportunities for Xiamen East and Jiangsu Seagull
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Jiangsu is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen East Asia and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Xiamen East i.e., Xiamen East and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Xiamen East and Jiangsu Seagull
Assuming the 90 days trading horizon Xiamen East Asia is expected to under-perform the Jiangsu Seagull. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen East Asia is 1.12 times less risky than Jiangsu Seagull. The stock trades about -0.12 of its potential returns per unit of risk. The Jiangsu Seagull Cooling is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,005 in Jiangsu Seagull Cooling on August 28, 2024 and sell it today you would lose (65.00) from holding Jiangsu Seagull Cooling or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen East Asia vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Xiamen East Asia |
| Jiangsu Seagull Cooling |
Xiamen East and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen East and Jiangsu Seagull
The main advantage of trading using opposite Xiamen East and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen East position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull'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 |
| Jiangsu Seagull vs. Chengtun Mining Group | Jiangsu Seagull vs. Allmed Medical Products | Jiangsu Seagull vs. Uroica Mining Safety | Jiangsu Seagull vs. Zhejiang Yayi Metal |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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