Correlation Between Xiamen Bank and Jiangsu Broadcasting
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By analyzing existing cross correlation between Xiamen Bank Co and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Xiamen Bank and Jiangsu Broadcasting 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 Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Jiangsu Broadcasting.
Diversification Opportunities for Xiamen Bank and Jiangsu Broadcasting
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Jiangsu is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Xiamen Bank and Jiangsu Broadcasting
Assuming the 90 days trading horizon Xiamen Bank Co is expected to generate 1.06 times more return on investment than Jiangsu Broadcasting. However, Xiamen Bank is 1.06 times more volatile than Jiangsu Broadcasting Cable. It trades about -0.05 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about -0.15 per unit of risk. If you would invest 564.00 in Xiamen Bank Co on November 1, 2024 and sell it today you would lose (9.00) from holding Xiamen Bank Co or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Xiamen Bank |
| Jiangsu Broadcasting |
Xiamen Bank and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Jiangsu Broadcasting
The main advantage of trading using opposite Xiamen Bank and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Jiangsu Broadcasting 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 Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| Xiamen Bank vs. Lianhe Chemical Technology | Xiamen Bank vs. Shandong Sanyuan Biotechnology | Xiamen Bank vs. Lier Chemical Co | Xiamen Bank vs. Guangdong Marubi Biotechnology |
| Jiangsu Broadcasting vs. Silkroad Visual Technology | Jiangsu Broadcasting vs. Anhui Transport Consulting | Jiangsu Broadcasting vs. Everdisplay Optronics Shanghai | Jiangsu Broadcasting vs. Dymatic Chemicals |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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