Correlation Between Xiamen Bank and Chengdu Spaceon
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By analyzing existing cross correlation between Xiamen Bank Co and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Xiamen Bank and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Chengdu Spaceon.
Diversification Opportunities for Xiamen Bank and Chengdu Spaceon
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xiamen and Chengdu is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Xiamen Bank and Chengdu Spaceon
Assuming the 90 days trading horizon Xiamen Bank Co is expected to generate 0.51 times more return on investment than Chengdu Spaceon. However, Xiamen Bank Co is 1.96 times less risky than Chengdu Spaceon. It trades about 0.01 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.0 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 | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Xiamen Bank Co vs. Chengdu Spaceon Electronics
Performance |
Timeline |
Xiamen Bank |
Chengdu Spaceon Elec |
Xiamen Bank and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiamen Bank and Chengdu Spaceon
The main advantage of trading using opposite Xiamen Bank and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon'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 |
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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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