Correlation Between Xiamen Goldenhome and China Longyuan
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By analyzing existing cross correlation between Xiamen Goldenhome Co and China Longyuan Power, you can compare the effects of market volatilities on Xiamen Goldenhome and China Longyuan 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 China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and China Longyuan.
Diversification Opportunities for Xiamen Goldenhome and China Longyuan
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiamen and China is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power 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 China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and China Longyuan go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and China Longyuan
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 1.03 times more return on investment than China Longyuan. However, Xiamen Goldenhome is 1.03 times more volatile than China Longyuan Power. It trades about 0.05 of its potential returns per unit of risk. China Longyuan Power is currently generating about -0.04 per unit of risk. If you would invest 1,775 in Xiamen Goldenhome Co on October 26, 2024 and sell it today you would earn a total of 212.00 from holding Xiamen Goldenhome Co or generate 11.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. China Longyuan Power
Performance |
| Timeline |
| Xiamen Goldenhome |
| China Longyuan Power |
Xiamen Goldenhome and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and China Longyuan
The main advantage of trading using opposite Xiamen Goldenhome and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, China Longyuan 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 China Longyuan will offset losses from the drop in China Longyuan's long position.| Xiamen Goldenhome vs. Ningbo Homelink Eco iTech | Xiamen Goldenhome vs. Everdisplay Optronics Shanghai | Xiamen Goldenhome vs. China Sports Industry | Xiamen Goldenhome vs. Qumei Furniture Group |
| China Longyuan vs. Markor International Home | China Longyuan vs. Easyhome New Retail | China Longyuan vs. Xiamen Goldenhome Co | China Longyuan vs. Gifore Agricultural Machinery |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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