Correlation Between Xiamen Bank and Yingde Greatchem
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By analyzing existing cross correlation between Xiamen Bank Co and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Xiamen Bank and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Yingde Greatchem.
Diversification Opportunities for Xiamen Bank and Yingde Greatchem
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xiamen and Yingde is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Xiamen Bank and Yingde Greatchem
Assuming the 90 days trading horizon Xiamen Bank Co is expected to generate 0.65 times more return on investment than Yingde Greatchem. However, Xiamen Bank Co is 1.53 times less risky than Yingde Greatchem. It trades about -0.12 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about -0.24 per unit of risk. If you would invest 563.00 in Xiamen Bank Co on October 11, 2024 and sell it today you would lose (24.00) from holding Xiamen Bank Co or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Xiamen Bank |
| Yingde Greatchem Che |
Xiamen Bank and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Yingde Greatchem
The main advantage of trading using opposite Xiamen Bank and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem's long position.| Xiamen Bank vs. HUAQIN TECHNOLOGY LTD | Xiamen Bank vs. Smartgiant Technology Co | Xiamen Bank vs. Sharetronic Data Technology | Xiamen Bank vs. Montage Technology Co |
| Yingde Greatchem vs. Xiamen Bank Co | Yingde Greatchem vs. Lecron Energy Saving | Yingde Greatchem vs. Shenzhen Glory Medical | Yingde Greatchem vs. Peoples Insurance of |
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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