Correlation Between Xiamen Bank and Guangdong Qunxing
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By analyzing existing cross correlation between Xiamen Bank Co and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Xiamen Bank and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Guangdong Qunxing.
Diversification Opportunities for Xiamen Bank and Guangdong Qunxing
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Guangdong is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Xiamen Bank and Guangdong Qunxing
Assuming the 90 days trading horizon Xiamen Bank is expected to generate 1.63 times less return on investment than Guangdong Qunxing. But when comparing it to its historical volatility, Xiamen Bank Co is 2.37 times less risky than Guangdong Qunxing. It trades about 0.05 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Guangdong Qunxing Toys on September 2, 2024 and sell it today you would earn a total of 75.00 from holding Guangdong Qunxing Toys or generate 12.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Xiamen Bank |
| Guangdong Qunxing Toys |
Xiamen Bank and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Guangdong Qunxing
The main advantage of trading using opposite Xiamen Bank and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Xiamen Bank vs. Cultural Investment Holdings | Xiamen Bank vs. Bus Online Co | Xiamen Bank vs. Holitech Technology Co | Xiamen Bank vs. Zotye Automobile Co |
| Guangdong Qunxing vs. Anhui Gujing Distillery | Guangdong Qunxing vs. Zhejiang HISUN Biomaterials | Guangdong Qunxing vs. Orinko Advanced Plastics | Guangdong Qunxing vs. Chongqing Sulian Plastic |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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