Correlation Between Xiamen Bank and Unisplendour Corp
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By analyzing existing cross correlation between Xiamen Bank Co and Unisplendour Corp, you can compare the effects of market volatilities on Xiamen Bank and Unisplendour Corp 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 Unisplendour Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Unisplendour Corp.
Diversification Opportunities for Xiamen Bank and Unisplendour Corp
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiamen and Unisplendour is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co and Unisplendour Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unisplendour Corp 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 Unisplendour Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unisplendour Corp has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Unisplendour Corp go up and down completely randomly.
Pair Corralation between Xiamen Bank and Unisplendour Corp
Assuming the 90 days trading horizon Xiamen Bank Co is expected to under-perform the Unisplendour Corp. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Bank Co is 2.4 times less risky than Unisplendour Corp. The stock trades about -0.24 of its potential returns per unit of risk. The Unisplendour Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,498 in Unisplendour Corp on October 15, 2024 and sell it today you would lose (30.00) from holding Unisplendour Corp or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Unisplendour Corp
Performance |
| Timeline |
| Xiamen Bank |
| Unisplendour Corp |
Xiamen Bank and Unisplendour Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Unisplendour Corp
The main advantage of trading using opposite Xiamen Bank and Unisplendour Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Unisplendour Corp 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 Unisplendour Corp will offset losses from the drop in Unisplendour Corp'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 |
| Unisplendour Corp vs. Ye Chiu Metal | Unisplendour Corp vs. Shanghai Yanpu Metal | Unisplendour Corp vs. Eastroc Beverage Group | Unisplendour Corp vs. Beijing HuaYuanYiTong Thermal |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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