Correlation Between Xiamen Bank and Jiangsu Jinling
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By analyzing existing cross correlation between Xiamen Bank Co and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Xiamen Bank and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Jiangsu Jinling.
Diversification Opportunities for Xiamen Bank and Jiangsu Jinling
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiamen and Jiangsu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Xiamen Bank and Jiangsu Jinling
Assuming the 90 days trading horizon Xiamen Bank Co is expected to generate 0.45 times more return on investment than Jiangsu Jinling. However, Xiamen Bank Co is 2.21 times less risky than Jiangsu Jinling. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.02 per unit of risk. If you would invest 510.00 in Xiamen Bank Co on September 5, 2024 and sell it today you would earn a total of 66.00 from holding Xiamen Bank Co or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Xiamen Bank |
| Jiangsu Jinling Sports |
Xiamen Bank and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Jiangsu Jinling
The main advantage of trading using opposite Xiamen Bank and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Xiamen Bank vs. Jiangsu Jinling Sports | Xiamen Bank vs. Everdisplay Optronics Shanghai | Xiamen Bank vs. Chengdu Spaceon Electronics | Xiamen Bank vs. CICC Fund Management |
| Jiangsu Jinling vs. Spring Airlines Co | Jiangsu Jinling vs. Tianjin Capital Environmental | Jiangsu Jinling vs. Ningbo Ligong Online | Jiangsu Jinling vs. Elite Color Environmental |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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