Correlation Between Xiamen CD and Anshan Senyuan
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By analyzing existing cross correlation between Xiamen CD and Anshan Senyuan Road, you can compare the effects of market volatilities on Xiamen CD and Anshan Senyuan 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 CD with a short position of Anshan Senyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen CD and Anshan Senyuan.
Diversification Opportunities for Xiamen CD and Anshan Senyuan
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xiamen and Anshan is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen CD and Anshan Senyuan Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anshan Senyuan Road and Xiamen CD 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 CD are associated (or correlated) with Anshan Senyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anshan Senyuan Road has no effect on the direction of Xiamen CD i.e., Xiamen CD and Anshan Senyuan go up and down completely randomly.
Pair Corralation between Xiamen CD and Anshan Senyuan
Assuming the 90 days trading horizon Xiamen CD is expected to generate 0.48 times more return on investment than Anshan Senyuan. However, Xiamen CD is 2.08 times less risky than Anshan Senyuan. It trades about -0.05 of its potential returns per unit of risk. Anshan Senyuan Road is currently generating about -0.32 per unit of risk. If you would invest 1,000.00 in Xiamen CD on October 11, 2024 and sell it today you would lose (21.00) from holding Xiamen CD or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen CD vs. Anshan Senyuan Road
Performance |
| Timeline |
| Xiamen CD |
| Anshan Senyuan Road |
Xiamen CD and Anshan Senyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen CD and Anshan Senyuan
The main advantage of trading using opposite Xiamen CD and Anshan Senyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen CD position performs unexpectedly, Anshan Senyuan 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 Anshan Senyuan will offset losses from the drop in Anshan Senyuan's long position.| Xiamen CD vs. Guangdong Shenglu Telecommunication | Xiamen CD vs. China Everbright Bank | Xiamen CD vs. HeNan Splendor Science | Xiamen CD vs. Bank of Suzhou |
| Anshan Senyuan vs. Beijing Mainstreets Investment | Anshan Senyuan vs. Ye Chiu Metal | Anshan Senyuan vs. Rising Nonferrous Metals | Anshan Senyuan vs. Guangdong Jingyi 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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