Correlation Between Dongxing Sec and Xiamen ITG
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongxing Sec Co and Xiamen ITG Group, you can compare the effects of market volatilities on Dongxing Sec and Xiamen ITG 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 Dongxing Sec with a short position of Xiamen ITG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Xiamen ITG.
Diversification Opportunities for Dongxing Sec and Xiamen ITG
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dongxing and Xiamen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Xiamen ITG Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen ITG Group and Dongxing Sec 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 Dongxing Sec Co are associated (or correlated) with Xiamen ITG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen ITG Group has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Xiamen ITG go up and down completely randomly.
Pair Corralation between Dongxing Sec and Xiamen ITG
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 1.35 times more return on investment than Xiamen ITG. However, Dongxing Sec is 1.35 times more volatile than Xiamen ITG Group. It trades about 0.15 of its potential returns per unit of risk. Xiamen ITG Group is currently generating about 0.03 per unit of risk. If you would invest 1,124 in Dongxing Sec Co on September 28, 2024 and sell it today you would earn a total of 59.00 from holding Dongxing Sec Co or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Xiamen ITG Group
Performance |
| Timeline |
| Dongxing Sec |
| Xiamen ITG Group |
Dongxing Sec and Xiamen ITG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Xiamen ITG
The main advantage of trading using opposite Dongxing Sec and Xiamen ITG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Xiamen ITG 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 Xiamen ITG will offset losses from the drop in Xiamen ITG's long position.| Dongxing Sec vs. Runjian Communication Co | Dongxing Sec vs. Fiberhome Telecommunication Technologies | Dongxing Sec vs. Nanjing Putian Telecommunications | Dongxing Sec vs. Penyao Environmental Protection |
| Xiamen ITG vs. China Life Insurance | Xiamen ITG vs. Cinda Securities Co | Xiamen ITG vs. Piotech Inc A | Xiamen ITG vs. Dongxing Sec Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |