Correlation Between Xiamen Bank and Xinjiang Tianrun
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By analyzing existing cross correlation between Xiamen Bank Co and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Xiamen Bank and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Xinjiang Tianrun.
Diversification Opportunities for Xiamen Bank and Xinjiang Tianrun
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Xinjiang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Xiamen Bank and Xinjiang Tianrun
Assuming the 90 days trading horizon Xiamen Bank is expected to generate 1.58 times less return on investment than Xinjiang Tianrun. But when comparing it to its historical volatility, Xiamen Bank Co is 1.34 times less risky than Xinjiang Tianrun. It trades about 0.16 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 855.00 in Xinjiang Tianrun Dairy on August 27, 2024 and sell it today you would earn a total of 84.00 from holding Xinjiang Tianrun Dairy or generate 9.82% 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. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Xiamen Bank |
| Xinjiang Tianrun Dairy |
Xiamen Bank and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Xinjiang Tianrun
The main advantage of trading using opposite Xiamen Bank and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Xiamen Bank vs. China Life Insurance | Xiamen Bank vs. Piotech Inc A | Xiamen Bank vs. Dongxing Sec Co | Xiamen Bank vs. Shanghai OPM Biosciences |
| Xinjiang Tianrun vs. Kweichow Moutai Co | Xinjiang Tianrun vs. Shenzhen Mindray Bio Medical | Xinjiang Tianrun vs. Jiangsu Pacific Quartz | Xinjiang Tianrun vs. G bits Network Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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