Correlation Between China Everbright and Xiamen CD
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Everbright Bank and Xiamen CD, you can compare the effects of market volatilities on China Everbright and Xiamen CD 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 Everbright with a short position of Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Everbright and Xiamen CD.
Diversification Opportunities for China Everbright and Xiamen CD
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Xiamen is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding China Everbright Bank and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD and China Everbright 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 Everbright Bank are associated (or correlated) with Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of China Everbright i.e., China Everbright and Xiamen CD go up and down completely randomly.
Pair Corralation between China Everbright and Xiamen CD
Assuming the 90 days trading horizon China Everbright Bank is expected to generate 0.97 times more return on investment than Xiamen CD. However, China Everbright Bank is 1.03 times less risky than Xiamen CD. It trades about 0.0 of its potential returns per unit of risk. Xiamen CD is currently generating about -0.12 per unit of risk. If you would invest 369.00 in China Everbright Bank on October 12, 2024 and sell it today you would lose (1.00) from holding China Everbright Bank or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Everbright Bank vs. Xiamen CD
Performance |
| Timeline |
| China Everbright Bank |
| Xiamen CD |
China Everbright and Xiamen CD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Everbright and Xiamen CD
The main advantage of trading using opposite China Everbright and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Everbright position performs unexpectedly, Xiamen CD 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 CD will offset losses from the drop in Xiamen CD's long position.| China Everbright vs. Penyao Environmental Protection | China Everbright vs. Baoshan Iron Steel | China Everbright vs. Hangzhou Guotai Environmental | China Everbright vs. Porton Fine Chemicals |
| Xiamen CD vs. Guangdong Shenglu Telecommunication | Xiamen CD vs. China Everbright Bank | Xiamen CD vs. HeNan Splendor Science | Xiamen CD vs. Bank of Suzhou |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| 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 | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |