Correlation Between Xiamen Goldenhome and Guangxi Guiguan
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Guangxi Guiguan Electric, you can compare the effects of market volatilities on Xiamen Goldenhome and Guangxi Guiguan 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 Guangxi Guiguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Guangxi Guiguan.
Diversification Opportunities for Xiamen Goldenhome and Guangxi Guiguan
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Guangxi is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Guangxi Guiguan Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Guiguan Electric 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 Guangxi Guiguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Guiguan Electric has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Guangxi Guiguan go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Guangxi Guiguan
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 1.52 times more return on investment than Guangxi Guiguan. However, Xiamen Goldenhome is 1.52 times more volatile than Guangxi Guiguan Electric. It trades about -0.12 of its potential returns per unit of risk. Guangxi Guiguan Electric is currently generating about -0.24 per unit of risk. If you would invest 2,101 in Xiamen Goldenhome Co on November 1, 2024 and sell it today you would lose (107.00) from holding Xiamen Goldenhome Co or give up 5.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Guangxi Guiguan Electric
Performance |
| Timeline |
| Xiamen Goldenhome |
| Guangxi Guiguan Electric |
Xiamen Goldenhome and Guangxi Guiguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Guangxi Guiguan
The main advantage of trading using opposite Xiamen Goldenhome and Guangxi Guiguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Guangxi Guiguan 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 Guangxi Guiguan will offset losses from the drop in Guangxi Guiguan's long position.| Xiamen Goldenhome vs. Shannon Semiconductor Technology | Xiamen Goldenhome vs. Chongqing Brewery Co | Xiamen Goldenhome vs. Jiaozuo Wanfang Aluminum | Xiamen Goldenhome vs. Giantec Semiconductor Corp |
| Guangxi Guiguan vs. Shanghai Shuixing Home | Guangxi Guiguan vs. Ciwen Media Co | Guangxi Guiguan vs. Xiamen Goldenhome Co | Guangxi Guiguan vs. Wasu Media Holding |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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