Correlation Between Xiamen Goldenhome and Hubei Xingfa
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Hubei Xingfa Chemicals, you can compare the effects of market volatilities on Xiamen Goldenhome and Hubei Xingfa 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 Hubei Xingfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Hubei Xingfa.
Diversification Opportunities for Xiamen Goldenhome and Hubei Xingfa
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Hubei is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Hubei Xingfa Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Xingfa Chemicals 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 Hubei Xingfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Xingfa Chemicals has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Hubei Xingfa go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Hubei Xingfa
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 0.68 times more return on investment than Hubei Xingfa. However, Xiamen Goldenhome Co is 1.47 times less risky than Hubei Xingfa. It trades about 0.17 of its potential returns per unit of risk. Hubei Xingfa Chemicals is currently generating about 0.03 per unit of risk. If you would invest 1,863 in Xiamen Goldenhome Co on August 25, 2024 and sell it today you would earn a total of 133.00 from holding Xiamen Goldenhome Co or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Hubei Xingfa Chemicals
Performance |
| Timeline |
| Xiamen Goldenhome |
| Hubei Xingfa Chemicals |
Xiamen Goldenhome and Hubei Xingfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Hubei Xingfa
The main advantage of trading using opposite Xiamen Goldenhome and Hubei Xingfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Hubei Xingfa 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 Hubei Xingfa will offset losses from the drop in Hubei Xingfa's long position.| Xiamen Goldenhome vs. Kweichow Moutai Co | Xiamen Goldenhome vs. Contemporary Amperex Technology | Xiamen Goldenhome vs. G bits Network Technology | Xiamen Goldenhome vs. Beijing Roborock Technology |
| Hubei Xingfa vs. Guangzhou Ruoyuchen Information | Hubei Xingfa vs. Northking Information Technology | Hubei Xingfa vs. Tonghua Grape Wine | Hubei Xingfa 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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