Correlation Between Xiamen Goldenhome and Vontron Technology
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Vontron Technology Co, you can compare the effects of market volatilities on Xiamen Goldenhome and Vontron Technology 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 Xiamen Goldenhome with a short position of Vontron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Vontron Technology.
Diversification Opportunities for Xiamen Goldenhome and Vontron Technology
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Vontron is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Vontron Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vontron Technology and Xiamen Goldenhome 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 Xiamen Goldenhome Co are associated (or correlated) with Vontron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vontron Technology has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Vontron Technology go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Vontron Technology
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 1.02 times more return on investment than Vontron Technology. However, Xiamen Goldenhome is 1.02 times more volatile than Vontron Technology Co. It trades about 0.21 of its potential returns per unit of risk. Vontron Technology Co is currently generating about 0.16 per unit of risk. If you would invest 1,579 in Xiamen Goldenhome Co on September 13, 2024 and sell it today you would earn a total of 586.00 from holding Xiamen Goldenhome Co or generate 37.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Vontron Technology Co
Performance |
| Timeline |
| Xiamen Goldenhome |
| Vontron Technology |
Xiamen Goldenhome and Vontron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Vontron Technology
The main advantage of trading using opposite Xiamen Goldenhome and Vontron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Vontron Technology 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 Vontron Technology will offset losses from the drop in Vontron Technology's long position.| Xiamen Goldenhome vs. Lutian Machinery Co | Xiamen Goldenhome vs. China Longyuan Power | Xiamen Goldenhome vs. PetroChina Co Ltd | Xiamen Goldenhome vs. Bank of China |
| Vontron Technology vs. Suofeiya Home Collection | Vontron Technology vs. Xiamen Goldenhome Co | Vontron Technology vs. Shanghai Shuixing Home | Vontron Technology vs. Oppein Home Group |
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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