Correlation Between Industrial and Xiamen East
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By analyzing existing cross correlation between Industrial and Commercial and Xiamen East Asia, you can compare the effects of market volatilities on Industrial and Xiamen East 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 East. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Xiamen East.
Diversification Opportunities for Industrial and Xiamen East
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Xiamen is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Xiamen East Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen East Asia 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 East. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen East Asia has no effect on the direction of Industrial i.e., Industrial and Xiamen East go up and down completely randomly.
Pair Corralation between Industrial and Xiamen East
Assuming the 90 days trading horizon Industrial and Commercial is expected to under-perform the Xiamen East. But the stock apears to be less risky and, when comparing its historical volatility, Industrial and Commercial is 2.18 times less risky than Xiamen East. The stock trades about -0.07 of its potential returns per unit of risk. The Xiamen East Asia is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,088 in Xiamen East Asia on October 23, 2024 and sell it today you would lose (7.00) from holding Xiamen East Asia or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Industrial and Commercial vs. Xiamen East Asia
Performance |
| Timeline |
| Industrial and Commercial |
| Xiamen East Asia |
Industrial and Xiamen East Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Xiamen East
The main advantage of trading using opposite Industrial and Xiamen East positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Xiamen East 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 East will offset losses from the drop in Xiamen East's long position.| Industrial vs. Techshine Electronics Co | Industrial vs. Sportsoul Co Ltd | Industrial vs. Beijing Jiaman Dress | Industrial vs. Jiangxi Lianchuang Opto electronic |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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