Correlation Between Xilinmen Furniture and Qingdao Rural
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By analyzing existing cross correlation between Xilinmen Furniture Co and Qingdao Rural Commercial, you can compare the effects of market volatilities on Xilinmen Furniture and Qingdao Rural 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 Xilinmen Furniture with a short position of Qingdao Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilinmen Furniture and Qingdao Rural.
Diversification Opportunities for Xilinmen Furniture and Qingdao Rural
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xilinmen and Qingdao is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Xilinmen Furniture Co and Qingdao Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Rural Commercial and Xilinmen Furniture 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 Xilinmen Furniture Co are associated (or correlated) with Qingdao Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Rural Commercial has no effect on the direction of Xilinmen Furniture i.e., Xilinmen Furniture and Qingdao Rural go up and down completely randomly.
Pair Corralation between Xilinmen Furniture and Qingdao Rural
Assuming the 90 days trading horizon Xilinmen Furniture is expected to generate 34.22 times less return on investment than Qingdao Rural. But when comparing it to its historical volatility, Xilinmen Furniture Co is 1.02 times less risky than Qingdao Rural. It trades about 0.0 of its potential returns per unit of risk. Qingdao Rural Commercial is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 292.00 in Qingdao Rural Commercial on September 4, 2024 and sell it today you would earn a total of 19.00 from holding Qingdao Rural Commercial or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Xilinmen Furniture Co vs. Qingdao Rural Commercial
Performance |
| Timeline |
| Xilinmen Furniture |
| Qingdao Rural Commercial |
Xilinmen Furniture and Qingdao Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilinmen Furniture and Qingdao Rural
The main advantage of trading using opposite Xilinmen Furniture and Qingdao Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilinmen Furniture position performs unexpectedly, Qingdao Rural 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 Qingdao Rural will offset losses from the drop in Qingdao Rural's long position.| Xilinmen Furniture vs. Industrial and Commercial | Xilinmen Furniture vs. Agricultural Bank of | Xilinmen Furniture vs. China Construction Bank | Xilinmen Furniture vs. Bank of China |
| Qingdao Rural vs. Jiangnan Mould Plastic | Qingdao Rural vs. Ningbo Tip Rubber | Qingdao Rural vs. Suzhou Xingye Material | Qingdao Rural vs. Dongguan Aohai Technology |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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