Correlation Between Xiamen Bank and Guangdong Wens
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By analyzing existing cross correlation between Xiamen Bank Co and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Xiamen Bank and Guangdong Wens 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 Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Guangdong Wens.
Diversification Opportunities for Xiamen Bank and Guangdong Wens
-0.66 | Correlation Coefficient |
Excellent 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 Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Guangdong Wens go up and down completely randomly.
Pair Corralation between Xiamen Bank and Guangdong Wens
Assuming the 90 days trading horizon Xiamen Bank Co is expected to generate 0.76 times more return on investment than Guangdong Wens. However, Xiamen Bank Co is 1.31 times less risky than Guangdong Wens. It trades about 0.03 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.03 per unit of risk. If you would invest 501.00 in Xiamen Bank Co on October 14, 2024 and sell it today you would earn a total of 29.00 from holding Xiamen Bank Co or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Xiamen Bank |
| Guangdong Wens Foodstuff |
Xiamen Bank and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Guangdong Wens
The main advantage of trading using opposite Xiamen Bank and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Guangdong Wens 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 Wens will offset losses from the drop in Guangdong Wens' long position.| Xiamen Bank vs. JiShi Media Co | Xiamen Bank vs. Zhejiang Qianjiang Motorcycle | Xiamen Bank vs. Guangdong Jinma Entertainment | Xiamen Bank vs. Thinkingdom Media Group |
| Guangdong Wens vs. Digiwin Software Co | Guangdong Wens vs. Gansu Huangtai Wine marketing | Guangdong Wens vs. Glodon Software Co | Guangdong Wens vs. Fujian Boss Software |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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