Correlation Between Xiamen Bank and Financial Street
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By analyzing existing cross correlation between Xiamen Bank Co and Financial Street Holdings, you can compare the effects of market volatilities on Xiamen Bank and Financial Street 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 Bank with a short position of Financial Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Financial Street.
Diversification Opportunities for Xiamen Bank and Financial Street
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Financial is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co and Financial Street Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Street Holdings and Xiamen Bank 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 Bank Co are associated (or correlated) with Financial Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Street Holdings has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Financial Street go up and down completely randomly.
Pair Corralation between Xiamen Bank and Financial Street
Assuming the 90 days trading horizon Xiamen Bank Co is expected to generate 0.51 times more return on investment than Financial Street. However, Xiamen Bank Co is 1.97 times less risky than Financial Street. It trades about 0.01 of its potential returns per unit of risk. Financial Street Holdings is currently generating about -0.03 per unit of risk. If you would invest 506.00 in Xiamen Bank Co on October 16, 2024 and sell it today you would earn a total of 14.00 from holding Xiamen Bank Co or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Financial Street Holdings
Performance |
| Timeline |
| Xiamen Bank |
| Financial Street Holdings |
Xiamen Bank and Financial Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Financial Street
The main advantage of trading using opposite Xiamen Bank and Financial Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Financial Street 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 Financial Street will offset losses from the drop in Financial Street's long position.| Xiamen Bank vs. Beijing Bewinner Communications | Xiamen Bank vs. Ningbo Ligong Online | Xiamen Bank vs. Nanning Chemical Industry | Xiamen Bank vs. Xinxiang Chemical Fiber |
| Financial Street vs. Zoje Resources Investment | Financial Street vs. Postal Savings Bank | Financial Street vs. Zhongrun Resources Investment | Financial Street vs. Hunan Investment Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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