Correlation Between Xiamen Bank and Jilin OLED
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By analyzing existing cross correlation between Xiamen Bank Co and Jilin OLED Material, you can compare the effects of market volatilities on Xiamen Bank and Jilin OLED 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 Jilin OLED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Jilin OLED.
Diversification Opportunities for Xiamen Bank and Jilin OLED
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xiamen and Jilin is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank Co and Jilin OLED Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin OLED Material 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 Jilin OLED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin OLED Material has no effect on the direction of Xiamen Bank i.e., Xiamen Bank and Jilin OLED go up and down completely randomly.
Pair Corralation between Xiamen Bank and Jilin OLED
Assuming the 90 days trading horizon Xiamen Bank Co is expected to generate 0.37 times more return on investment than Jilin OLED. However, Xiamen Bank Co is 2.74 times less risky than Jilin OLED. It trades about 0.02 of its potential returns per unit of risk. Jilin OLED Material is currently generating about 0.0 per unit of risk. If you would invest 493.00 in Xiamen Bank Co on October 29, 2024 and sell it today you would earn a total of 52.00 from holding Xiamen Bank Co or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Jilin OLED Material
Performance |
| Timeline |
| Xiamen Bank |
| Jilin OLED Material |
Xiamen Bank and Jilin OLED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Jilin OLED
The main advantage of trading using opposite Xiamen Bank and Jilin OLED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank position performs unexpectedly, Jilin OLED 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 Jilin OLED will offset losses from the drop in Jilin OLED's long position.| Xiamen Bank vs. Hunan TV Broadcast | Xiamen Bank vs. Tianshan Aluminum Group | Xiamen Bank vs. Longjian Road Bridge | Xiamen Bank vs. Hubeiyichang Transportation Group |
| Jilin OLED vs. Kailong High Technology | Jilin OLED vs. CICC Fund Management | Jilin OLED vs. Capitalonline Data Service | Jilin OLED vs. Cicc Fund Management |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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