Correlation Between Xiamen Goldenhome and Gansu Huangtai
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Xiamen Goldenhome and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Gansu Huangtai.
Diversification Opportunities for Xiamen Goldenhome and Gansu Huangtai
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Gansu is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Gansu Huangtai
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the Gansu Huangtai. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Goldenhome Co is 1.75 times less risky than Gansu Huangtai. The stock trades about -0.14 of its potential returns per unit of risk. The Gansu Huangtai Wine marketing is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,476 in Gansu Huangtai Wine marketing on October 11, 2024 and sell it today you would earn a total of 226.00 from holding Gansu Huangtai Wine marketing or generate 15.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Xiamen Goldenhome |
| Gansu Huangtai Wine |
Xiamen Goldenhome and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Gansu Huangtai
The main advantage of trading using opposite Xiamen Goldenhome and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Xiamen Goldenhome vs. Shaanxi Construction Machinery | Xiamen Goldenhome vs. Anhui Huilong Agricultural | Xiamen Goldenhome vs. Gansu Huangtai Wine marketing | Xiamen Goldenhome vs. Hongrun Construction Group |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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