Correlation Between Highbroad Advanced and Xiamen Jihong
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By analyzing existing cross correlation between Highbroad Advanced Material and Xiamen Jihong Package, you can compare the effects of market volatilities on Highbroad Advanced and Xiamen Jihong 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 Highbroad Advanced with a short position of Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highbroad Advanced and Xiamen Jihong.
Diversification Opportunities for Highbroad Advanced and Xiamen Jihong
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Highbroad and Xiamen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Highbroad Advanced Material and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package and Highbroad Advanced 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 Highbroad Advanced Material are associated (or correlated) with Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Highbroad Advanced i.e., Highbroad Advanced and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Highbroad Advanced and Xiamen Jihong
Assuming the 90 days trading horizon Highbroad Advanced is expected to generate 1.43 times less return on investment than Xiamen Jihong. In addition to that, Highbroad Advanced is 1.1 times more volatile than Xiamen Jihong Package. It trades about 0.1 of its total potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.16 per unit of volatility. If you would invest 1,205 in Xiamen Jihong Package on November 4, 2024 and sell it today you would earn a total of 81.00 from holding Xiamen Jihong Package or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Highbroad Advanced Material vs. Xiamen Jihong Package
Performance |
| Timeline |
| Highbroad Advanced |
| Xiamen Jihong Package |
Highbroad Advanced and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highbroad Advanced and Xiamen Jihong
The main advantage of trading using opposite Highbroad Advanced and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highbroad Advanced position performs unexpectedly, Xiamen Jihong 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 Jihong will offset losses from the drop in Xiamen Jihong's long position.| Highbroad Advanced vs. China Satellite Communications | Highbroad Advanced vs. Hubei Geoway Investment | Highbroad Advanced vs. Chengdu Xingrong Investment | Highbroad Advanced vs. Eastern Communications Co |
| Xiamen Jihong vs. Linkage Software Co | Xiamen Jihong vs. China Life Insurance | Xiamen Jihong vs. China Sports Industry | Xiamen Jihong vs. Inspur Software Co |
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.
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