Correlation Between Xilinmen Furniture and Zhongtai Securities
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By analyzing existing cross correlation between Xilinmen Furniture Co and Zhongtai Securities Co, you can compare the effects of market volatilities on Xilinmen Furniture and Zhongtai Securities 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 Zhongtai Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xilinmen Furniture and Zhongtai Securities.
Diversification Opportunities for Xilinmen Furniture and Zhongtai Securities
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xilinmen and Zhongtai is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Xilinmen Furniture Co and Zhongtai Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtai Securities 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 Zhongtai Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtai Securities has no effect on the direction of Xilinmen Furniture i.e., Xilinmen Furniture and Zhongtai Securities go up and down completely randomly.
Pair Corralation between Xilinmen Furniture and Zhongtai Securities
Assuming the 90 days trading horizon Xilinmen Furniture Co is expected to generate 1.24 times more return on investment than Zhongtai Securities. However, Xilinmen Furniture is 1.24 times more volatile than Zhongtai Securities Co. It trades about 0.0 of its potential returns per unit of risk. Zhongtai Securities Co is currently generating about 0.0 per unit of risk. If you would invest 1,709 in Xilinmen Furniture Co on October 7, 2024 and sell it today you would lose (89.00) from holding Xilinmen Furniture Co or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xilinmen Furniture Co vs. Zhongtai Securities Co
Performance |
| Timeline |
| Xilinmen Furniture |
| Zhongtai Securities |
Xilinmen Furniture and Zhongtai Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xilinmen Furniture and Zhongtai Securities
The main advantage of trading using opposite Xilinmen Furniture and Zhongtai Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xilinmen Furniture position performs unexpectedly, Zhongtai Securities 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 Zhongtai Securities will offset losses from the drop in Zhongtai Securities' long position.| Xilinmen Furniture vs. Agricultural Bank of | Xilinmen Furniture vs. Postal Savings Bank | Xilinmen Furniture vs. Gansu Jiu Steel | Xilinmen Furniture vs. Shandong Mining Machinery |
| Zhongtai Securities vs. Qingdao Foods Co | Zhongtai Securities vs. HaiXin Foods Co | Zhongtai Securities vs. JCHX Mining Management | Zhongtai Securities vs. Ligao Foods CoLtd |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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