Correlation Between Xiamen Bank and Kingclean Electric
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By analyzing existing cross correlation between Xiamen Bank Co and Kingclean Electric Co, you can compare the effects of market volatilities on Xiamen Bank and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Kingclean Electric.
Diversification Opportunities for Xiamen Bank and Kingclean Electric
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Kingclean is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Kingclean Electric go up and down completely randomly.
Pair Corralation between Xiamen Bank and Kingclean Electric
Assuming the 90 days trading horizon Xiamen Bank Co is expected to generate 0.99 times more return on investment than Kingclean Electric. However, Xiamen Bank Co is 1.01 times less risky than Kingclean Electric. It trades about 0.12 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.16 per unit of risk. If you would invest 518.00 in Xiamen Bank Co on August 24, 2024 and sell it today you would earn a total of 25.00 from holding Xiamen Bank Co or generate 4.83% 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. Kingclean Electric Co
Performance |
| Timeline |
| Xiamen Bank |
| Kingclean Electric |
Xiamen Bank and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Kingclean Electric
The main advantage of trading using opposite Xiamen Bank and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Xiamen Bank vs. Servyou Software Group | Xiamen Bank vs. Hunan Mendale Hometextile | Xiamen Bank vs. Shandong Homey Aquatic | Xiamen Bank vs. DO Home Collection |
| Kingclean Electric vs. CITIC Metal Co | Kingclean Electric vs. Hainan Mining Co | Kingclean Electric vs. Huaibei Mining Holdings | Kingclean Electric vs. Jiangxi Naipu Mining |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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