Correlation Between China Asset and Xiamen Goldenhome
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By analyzing existing cross correlation between China Asset Management and Xiamen Goldenhome Co, you can compare the effects of market volatilities on China Asset and Xiamen Goldenhome 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 China Asset with a short position of Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Xiamen Goldenhome.
Diversification Opportunities for China Asset and Xiamen Goldenhome
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Xiamen is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome and China Asset 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 China Asset Management are associated (or correlated) with Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of China Asset i.e., China Asset and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between China Asset and Xiamen Goldenhome
Assuming the 90 days trading horizon China Asset is expected to generate 7.32 times less return on investment than Xiamen Goldenhome. But when comparing it to its historical volatility, China Asset Management is 2.53 times less risky than Xiamen Goldenhome. It trades about 0.09 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,930 in Xiamen Goldenhome Co on September 1, 2024 and sell it today you would earn a total of 240.00 from holding Xiamen Goldenhome Co or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Xiamen Goldenhome Co
Performance |
| Timeline |
| China Asset Management |
| Xiamen Goldenhome |
China Asset and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Xiamen Goldenhome
The main advantage of trading using opposite China Asset and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Xiamen Goldenhome 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 Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
| Xiamen Goldenhome vs. China Asset Management | Xiamen Goldenhome vs. Chison Medical Technologies | Xiamen Goldenhome vs. CICC Fund Management | Xiamen Goldenhome vs. GKHT Medical Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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