Correlation Between Xiamen Bank and Shenyang Huitian
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By analyzing existing cross correlation between Xiamen Bank Co and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Xiamen Bank and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Shenyang Huitian.
Diversification Opportunities for Xiamen Bank and Shenyang Huitian
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Shenyang is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Xiamen Bank and Shenyang Huitian
Assuming the 90 days trading horizon Xiamen Bank Co is expected to generate 0.34 times more return on investment than Shenyang Huitian. However, Xiamen Bank Co is 2.97 times less risky than Shenyang Huitian. It trades about -0.13 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about -0.12 per unit of risk. If you would invest 563.00 in Xiamen Bank Co on October 12, 2024 and sell it today you would lose (24.00) from holding Xiamen Bank Co or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Xiamen Bank |
| Shenyang Huitian Thermal |
Xiamen Bank and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Shenyang Huitian
The main advantage of trading using opposite Xiamen Bank and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Xiamen Bank vs. HUAQIN TECHNOLOGY LTD | Xiamen Bank vs. Smartgiant Technology Co | Xiamen Bank vs. Sharetronic Data Technology | Xiamen Bank vs. Montage Technology Co |
| Shenyang Huitian vs. Ping An Insurance | Shenyang Huitian vs. Bank of Suzhou | Shenyang Huitian vs. Xiamen Bank Co | Shenyang Huitian vs. Digiwin Software Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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