Correlation Between Caihong Display and Xiamen Jihong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Caihong Display Devices and Xiamen Jihong Package, you can compare the effects of market volatilities on Caihong Display and Xiamen Jihong 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 Caihong Display with a short position of Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Xiamen Jihong.
Diversification Opportunities for Caihong Display and Xiamen Jihong
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Caihong and Xiamen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package and Caihong Display 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 Caihong Display Devices are associated (or correlated) with Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Caihong Display i.e., Caihong Display and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Caihong Display and Xiamen Jihong
Assuming the 90 days trading horizon Caihong Display Devices is expected to generate 0.65 times more return on investment than Xiamen Jihong. However, Caihong Display Devices is 1.55 times less risky than Xiamen Jihong. It trades about 0.12 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.07 per unit of risk. If you would invest 742.00 in Caihong Display Devices on September 26, 2024 and sell it today you would earn a total of 91.00 from holding Caihong Display Devices or generate 12.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Xiamen Jihong Package
Performance |
| Timeline |
| Caihong Display Devices |
| Xiamen Jihong Package |
Caihong Display and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Xiamen Jihong
The main advantage of trading using opposite Caihong Display and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display position performs unexpectedly, Xiamen Jihong 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 Jihong will offset losses from the drop in Xiamen Jihong's long position.| Caihong Display vs. Industrial and Commercial | Caihong Display vs. China Construction Bank | Caihong Display vs. Agricultural Bank of | Caihong Display vs. Bank of China |
| Xiamen Jihong vs. Caihong Display Devices | Xiamen Jihong vs. Tianjin Ruixin Technology | Xiamen Jihong vs. Tianshui Huatian Technology | Xiamen Jihong vs. Shandong Sinoglory Health |
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.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |