Correlation Between Industrial and XiaMen HongXin
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By analyzing existing cross correlation between Industrial and Commercial and XiaMen HongXin Electron tech, you can compare the effects of market volatilities on Industrial and XiaMen HongXin 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 Industrial with a short position of XiaMen HongXin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and XiaMen HongXin.
Diversification Opportunities for Industrial and XiaMen HongXin
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and XiaMen is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and XiaMen HongXin Electron tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XiaMen HongXin Electron and Industrial 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 Industrial and Commercial are associated (or correlated) with XiaMen HongXin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XiaMen HongXin Electron has no effect on the direction of Industrial i.e., Industrial and XiaMen HongXin go up and down completely randomly.
Pair Corralation between Industrial and XiaMen HongXin
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.39 times more return on investment than XiaMen HongXin. However, Industrial and Commercial is 2.56 times less risky than XiaMen HongXin. It trades about 0.13 of its potential returns per unit of risk. XiaMen HongXin Electron tech is currently generating about -0.17 per unit of risk. If you would invest 642.00 in Industrial and Commercial on October 13, 2024 and sell it today you would earn a total of 25.00 from holding Industrial and Commercial or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. XiaMen HongXin Electron tech
Performance |
| Timeline |
| Industrial and Commercial |
| XiaMen HongXin Electron |
Industrial and XiaMen HongXin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and XiaMen HongXin
The main advantage of trading using opposite Industrial and XiaMen HongXin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, XiaMen HongXin 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 HongXin will offset losses from the drop in XiaMen HongXin's long position.| Industrial vs. Hongrun Construction Group | Industrial vs. Hengkang Medical Group | Industrial vs. Long Yuan Construction | Industrial vs. Zhongzhu Medical Holdings |
| XiaMen HongXin vs. Biwin Storage Technology | XiaMen HongXin vs. PetroChina Co Ltd | XiaMen HongXin vs. Industrial and Commercial | XiaMen HongXin vs. China Construction Bank |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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