Correlation Between Xiamen Goldenhome and China Asset
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By analyzing existing cross correlation between Xiamen Goldenhome Co and China Asset Management, you can compare the effects of market volatilities on Xiamen Goldenhome and China Asset 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 Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and China Asset.
Diversification Opportunities for Xiamen Goldenhome and China Asset
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xiamen and China is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and China Asset go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and China Asset
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the China Asset. In addition to that, Xiamen Goldenhome is 1.35 times more volatile than China Asset Management. It trades about -0.11 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.13 per unit of volatility. If you would invest 359.00 in China Asset Management on November 30, 2024 and sell it today you would earn a total of 23.00 from holding China Asset Management or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. China Asset Management
Performance |
| Timeline |
| Xiamen Goldenhome |
| China Asset Management |
Xiamen Goldenhome and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and China Asset
The main advantage of trading using opposite Xiamen Goldenhome and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, China Asset 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 Asset will offset losses from the drop in China Asset's long position.| Xiamen Goldenhome vs. Queclink Wireless Solutions | Xiamen Goldenhome vs. Xinjiang Tianrun Dairy | Xiamen Goldenhome vs. New Hope Dairy | Xiamen Goldenhome vs. Jilin Jlu Communication |
| China Asset vs. Jiangsu Jinling Sports | China Asset vs. Chengtun Mining Group | China Asset vs. Jiangxi Copper Co | China Asset vs. Shanghai Yanpu Metal |
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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