Correlation Between Xiamen Goldenhome and Inner Mongolia
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Inner Mongolia Dazhong, you can compare the effects of market volatilities on Xiamen Goldenhome and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Inner Mongolia.
Diversification Opportunities for Xiamen Goldenhome and Inner Mongolia
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Inner is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Inner Mongolia Dazhong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Dazhong 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Dazhong has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Inner Mongolia go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Inner Mongolia
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 1.72 times more return on investment than Inner Mongolia. However, Xiamen Goldenhome is 1.72 times more volatile than Inner Mongolia Dazhong. It trades about -0.02 of its potential returns per unit of risk. Inner Mongolia Dazhong is currently generating about -0.25 per unit of risk. If you would invest 2,057 in Xiamen Goldenhome Co on October 23, 2024 and sell it today you would lose (27.00) from holding Xiamen Goldenhome Co or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Inner Mongolia Dazhong
Performance |
| Timeline |
| Xiamen Goldenhome |
| Inner Mongolia Dazhong |
Xiamen Goldenhome and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Inner Mongolia
The main advantage of trading using opposite Xiamen Goldenhome and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Xiamen Goldenhome vs. BeiGene | Xiamen Goldenhome vs. Kweichow Moutai Co | Xiamen Goldenhome vs. Beijing Roborock Technology | Xiamen Goldenhome vs. G bits Network Technology |
| Inner Mongolia vs. Luolai Home Textile | Inner Mongolia vs. Xiwang Foodstuffs Co | Inner Mongolia vs. Xiamen Goldenhome Co | Inner Mongolia vs. Tonghua Grape Wine |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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