Correlation Between Xiamen CD and Zhejiang Tailin
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By analyzing existing cross correlation between Xiamen CD and Zhejiang Tailin Bioengineering, you can compare the effects of market volatilities on Xiamen CD and Zhejiang Tailin 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 Zhejiang Tailin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen CD and Zhejiang Tailin.
Diversification Opportunities for Xiamen CD and Zhejiang Tailin
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Xiamen and Zhejiang is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen CD and Zhejiang Tailin Bioengineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tailin Bioe 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 Zhejiang Tailin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tailin Bioe has no effect on the direction of Xiamen CD i.e., Xiamen CD and Zhejiang Tailin go up and down completely randomly.
Pair Corralation between Xiamen CD and Zhejiang Tailin
Assuming the 90 days trading horizon Xiamen CD is expected to generate 0.57 times more return on investment than Zhejiang Tailin. However, Xiamen CD is 1.76 times less risky than Zhejiang Tailin. It trades about -0.01 of its potential returns per unit of risk. Zhejiang Tailin Bioengineering is currently generating about -0.02 per unit of risk. If you would invest 1,213 in Xiamen CD on October 16, 2024 and sell it today you would lose (256.00) from holding Xiamen CD or give up 21.1% 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. Zhejiang Tailin Bioengineering
Performance |
| Timeline |
| Xiamen CD |
| Zhejiang Tailin Bioe |
Xiamen CD and Zhejiang Tailin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen CD and Zhejiang Tailin
The main advantage of trading using opposite Xiamen CD and Zhejiang Tailin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen CD position performs unexpectedly, Zhejiang Tailin 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 Zhejiang Tailin will offset losses from the drop in Zhejiang Tailin's long position.| Xiamen CD vs. Hubei Geoway Investment | Xiamen CD vs. Shanghai V Test Semiconductor | Xiamen CD vs. Yuanjie Semiconductor Technology | Xiamen CD vs. Zhejiang Construction Investment |
| Zhejiang Tailin vs. Southern PublishingMedia Co | Zhejiang Tailin vs. Beijing Kaiwen Education | Zhejiang Tailin vs. Heilongjiang Publishing Media | Zhejiang Tailin vs. Beijing Mainstreets Investment |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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