Correlation Between Chinese Universe and Xiamen Wanli
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By analyzing existing cross correlation between Chinese Universe Publishing and Xiamen Wanli Stone, you can compare the effects of market volatilities on Chinese Universe and Xiamen Wanli 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 Chinese Universe with a short position of Xiamen Wanli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Xiamen Wanli.
Diversification Opportunities for Chinese Universe and Xiamen Wanli
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chinese and Xiamen is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Xiamen Wanli Stone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Wanli Stone and Chinese Universe 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 Chinese Universe Publishing are associated (or correlated) with Xiamen Wanli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Wanli Stone has no effect on the direction of Chinese Universe i.e., Chinese Universe and Xiamen Wanli go up and down completely randomly.
Pair Corralation between Chinese Universe and Xiamen Wanli
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to generate 1.09 times more return on investment than Xiamen Wanli. However, Chinese Universe is 1.09 times more volatile than Xiamen Wanli Stone. It trades about 0.04 of its potential returns per unit of risk. Xiamen Wanli Stone is currently generating about 0.02 per unit of risk. If you would invest 921.00 in Chinese Universe Publishing on September 3, 2024 and sell it today you would earn a total of 339.00 from holding Chinese Universe Publishing or generate 36.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Xiamen Wanli Stone
Performance |
| Timeline |
| Chinese Universe Pub |
| Xiamen Wanli Stone |
Chinese Universe and Xiamen Wanli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Xiamen Wanli
The main advantage of trading using opposite Chinese Universe and Xiamen Wanli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe position performs unexpectedly, Xiamen Wanli 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 Wanli will offset losses from the drop in Xiamen Wanli's long position.| Chinese Universe vs. Innovative Medical Management | Chinese Universe vs. Fujian Newland Computer | Chinese Universe vs. State Grid InformationCommunication | Chinese Universe vs. Sanbo Hospital Management |
| Xiamen Wanli vs. Zijin Mining Group | Xiamen Wanli vs. Baoshan Iron Steel | Xiamen Wanli vs. Hoshine Silicon Ind |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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