Correlation Between China State and Xiamen ITG
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By analyzing existing cross correlation between China State Construction and Xiamen ITG Group, you can compare the effects of market volatilities on China State 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 China State with a short position of Xiamen ITG. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Xiamen ITG.
Diversification Opportunities for China State and Xiamen ITG
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Xiamen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 China State 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 China State Construction 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 China State i.e., China State and Xiamen ITG go up and down completely randomly.
Pair Corralation between China State and Xiamen ITG
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Xiamen ITG. In addition to that, China State is 1.21 times more volatile than Xiamen ITG Group. It trades about -0.09 of its total potential returns per unit of risk. Xiamen ITG Group is currently generating about -0.09 per unit of volatility. If you would invest 688.00 in Xiamen ITG Group on August 27, 2024 and sell it today you would lose (25.00) from holding Xiamen ITG Group or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Xiamen ITG Group
Performance |
| Timeline |
| China State Construction |
| Xiamen ITG Group |
China State and Xiamen ITG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Xiamen ITG
The main advantage of trading using opposite China State and Xiamen ITG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Ming Yang Smart | China State vs. 159681 | China State vs. 159005 | China State vs. Loctek Ergonomic Technology |
| Xiamen ITG vs. Industrial and Commercial | Xiamen ITG vs. Agricultural Bank of | Xiamen ITG vs. China Construction Bank | Xiamen ITG vs. Bank of China |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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