Correlation Between Xiamen ITG and HeNan Splendor
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By analyzing existing cross correlation between Xiamen ITG Group and HeNan Splendor Science, you can compare the effects of market volatilities on Xiamen ITG and HeNan Splendor 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 ITG with a short position of HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen ITG and HeNan Splendor.
Diversification Opportunities for Xiamen ITG and HeNan Splendor
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and HeNan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen ITG Group and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science and Xiamen ITG 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 ITG Group are associated (or correlated) with HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Xiamen ITG i.e., Xiamen ITG and HeNan Splendor go up and down completely randomly.
Pair Corralation between Xiamen ITG and HeNan Splendor
Assuming the 90 days trading horizon Xiamen ITG Group is expected to under-perform the HeNan Splendor. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen ITG Group is 1.48 times less risky than HeNan Splendor. The stock trades about -0.06 of its potential returns per unit of risk. The HeNan Splendor Science is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,026 in HeNan Splendor Science on September 2, 2024 and sell it today you would earn a total of 22.00 from holding HeNan Splendor Science or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen ITG Group vs. HeNan Splendor Science
Performance |
| Timeline |
| Xiamen ITG Group |
| HeNan Splendor Science |
Xiamen ITG and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen ITG and HeNan Splendor
The main advantage of trading using opposite Xiamen ITG and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen ITG position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Xiamen ITG vs. Tibet Huayu Mining | Xiamen ITG vs. Hainan Mining Co | Xiamen ITG vs. Guangzhou Zhujiang Brewery | Xiamen ITG vs. Lander Sports Development |
| HeNan Splendor vs. Ligao Foods CoLtd | HeNan Splendor vs. Zoje Resources Investment | HeNan Splendor vs. Shanghai Ziyan Foods | HeNan Splendor vs. Hubei Geoway 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 CEOs Directory module to screen CEOs from public companies around the world.
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