Correlation Between Xiamen Goldenhome and CIMC Vehicles
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By analyzing existing cross correlation between Xiamen Goldenhome Co and CIMC Vehicles Co, you can compare the effects of market volatilities on Xiamen Goldenhome and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and CIMC Vehicles.
Diversification Opportunities for Xiamen Goldenhome and CIMC Vehicles
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiamen and CIMC is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and CIMC Vehicles
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the CIMC Vehicles. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Goldenhome Co is 1.03 times less risky than CIMC Vehicles. The stock trades about -0.03 of its potential returns per unit of risk. The CIMC Vehicles Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 809.00 in CIMC Vehicles Co on October 18, 2024 and sell it today you would earn a total of 88.00 from holding CIMC Vehicles Co or generate 10.88% 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. CIMC Vehicles Co
Performance |
| Timeline |
| Xiamen Goldenhome |
| CIMC Vehicles |
Xiamen Goldenhome and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and CIMC Vehicles
The main advantage of trading using opposite Xiamen Goldenhome and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Xiamen Goldenhome vs. RoadMain T Co | Xiamen Goldenhome vs. Shenyang Chemical Industry | Xiamen Goldenhome vs. Jiangsu Broadcasting Cable | Xiamen Goldenhome vs. Sichuan Fulin Transportation |
| CIMC Vehicles vs. Eyebright Medical Technology | CIMC Vehicles vs. Xiamen Goldenhome Co | CIMC Vehicles vs. Tinavi Medical Technologies | CIMC Vehicles vs. Qumei Furniture 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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