Correlation Between Hang Xiao and Bank of XiAn
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By analyzing existing cross correlation between Hang Xiao Steel and Bank of XiAn, you can compare the effects of market volatilities on Hang Xiao and Bank of XiAn 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 Hang Xiao with a short position of Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Xiao and Bank of XiAn.
Diversification Opportunities for Hang Xiao and Bank of XiAn
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hang and Bank is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hang Xiao Steel and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn and Hang Xiao 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 Hang Xiao Steel are associated (or correlated) with Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of Hang Xiao i.e., Hang Xiao and Bank of XiAn go up and down completely randomly.
Pair Corralation between Hang Xiao and Bank of XiAn
Assuming the 90 days trading horizon Hang Xiao Steel is expected to under-perform the Bank of XiAn. In addition to that, Hang Xiao is 1.31 times more volatile than Bank of XiAn. It trades about -0.03 of its total potential returns per unit of risk. Bank of XiAn is currently generating about 0.02 per unit of volatility. If you would invest 358.00 in Bank of XiAn on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Bank of XiAn or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.71% |
| Values | Daily Returns |
Hang Xiao Steel vs. Bank of XiAn
Performance |
| Timeline |
| Hang Xiao Steel |
| Bank of XiAn |
Hang Xiao and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Xiao and Bank of XiAn
The main advantage of trading using opposite Hang Xiao and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Xiao position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn's long position.| Hang Xiao vs. Agricultural Bank of | Hang Xiao vs. Industrial and Commercial | Hang Xiao vs. Bank of China | Hang Xiao vs. PetroChina Co Ltd |
| Bank of XiAn vs. Hang Xiao Steel | Bank of XiAn vs. Heilongjiang Transport Development | Bank of XiAn vs. Sino Platinum Metals Co | Bank of XiAn vs. Jiaozuo Wanfang Aluminum |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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