Correlation Between Xiamen Goldenhome and Hongrun Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen Goldenhome Co and Hongrun Construction Group, you can compare the effects of market volatilities on Xiamen Goldenhome and Hongrun Construction 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 Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Hongrun Construction.
Diversification Opportunities for Xiamen Goldenhome and Hongrun Construction
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Hongrun is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun Construction 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 Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Hongrun Construction go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Hongrun Construction
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the Hongrun Construction. In addition to that, Xiamen Goldenhome is 1.05 times more volatile than Hongrun Construction Group. It trades about -0.04 of its total potential returns per unit of risk. Hongrun Construction Group is currently generating about 0.0 per unit of volatility. If you would invest 522.00 in Hongrun Construction Group on September 12, 2024 and sell it today you would lose (41.00) from holding Hongrun Construction Group or give up 7.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Hongrun Construction Group
Performance |
| Timeline |
| Xiamen Goldenhome |
| Hongrun Construction |
Xiamen Goldenhome and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Hongrun Construction
The main advantage of trading using opposite Xiamen Goldenhome and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Hongrun Construction 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 Hongrun Construction will offset losses from the drop in Hongrun Construction's long position.| Xiamen Goldenhome vs. Lutian Machinery Co | Xiamen Goldenhome vs. PetroChina Co Ltd | Xiamen Goldenhome vs. Bank of China | Xiamen Goldenhome vs. Gansu Jiu Steel |
| Hongrun Construction vs. Harvest Fund Management | Hongrun Construction vs. Hunan Mendale Hometextile | Hongrun Construction vs. Shanghai Shuixing Home | Hongrun Construction vs. Xiamen Goldenhome Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |