Correlation Between Dongxing Sec and Xiamen Bank
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By analyzing existing cross correlation between Dongxing Sec Co and Xiamen Bank Co, you can compare the effects of market volatilities on Dongxing Sec and Xiamen Bank 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 Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Xiamen Bank.
Diversification Opportunities for Dongxing Sec and Xiamen Bank
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongxing and Xiamen is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank 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 Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Xiamen Bank go up and down completely randomly.
Pair Corralation between Dongxing Sec and Xiamen Bank
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 2.38 times more return on investment than Xiamen Bank. However, Dongxing Sec is 2.38 times more volatile than Xiamen Bank Co. It trades about 0.07 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.15 per unit of risk. If you would invest 1,053 in Dongxing Sec Co on August 29, 2024 and sell it today you would earn a total of 50.00 from holding Dongxing Sec Co or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Xiamen Bank Co
Performance |
| Timeline |
| Dongxing Sec |
| Xiamen Bank |
Dongxing Sec and Xiamen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Xiamen Bank
The main advantage of trading using opposite Dongxing Sec and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Xiamen Bank 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 Bank will offset losses from the drop in Xiamen Bank's long position.| Dongxing Sec vs. Industrial and Commercial | Dongxing Sec vs. Agricultural Bank of | Dongxing Sec vs. China Construction Bank | Dongxing Sec vs. Bank of China |
| Xiamen Bank vs. China Nonferrous Metal | Xiamen Bank vs. Pengxin International Mining | Xiamen Bank vs. Guangzhou Haozhi Industrial | Xiamen Bank vs. Miracll Chemicals 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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