Correlation Between Xiamen Goldenhome and Bank of XiAn
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Bank of XiAn, you can compare the effects of market volatilities on Xiamen Goldenhome and Bank of XiAn 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 Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Bank of XiAn.
Diversification Opportunities for Xiamen Goldenhome and Bank of XiAn
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Bank is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn 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 Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Bank of XiAn go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Bank of XiAn
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the Bank of XiAn. In addition to that, Xiamen Goldenhome is 1.25 times more volatile than Bank of XiAn. It trades about -0.09 of its total potential returns per unit of risk. Bank of XiAn is currently generating about -0.06 per unit of volatility. If you would invest 353.00 in Bank of XiAn on January 19, 2025 and sell it today you would lose (11.00) from holding Bank of XiAn or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Bank of XiAn
Performance |
| Timeline |
| Xiamen Goldenhome |
| Bank of XiAn |
Xiamen Goldenhome and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Bank of XiAn
The main advantage of trading using opposite Xiamen Goldenhome and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn's long position.| Xiamen Goldenhome vs. Agricultural Bank of | Xiamen Goldenhome vs. Industrial and Commercial | Xiamen Goldenhome vs. Bank of China | Xiamen Goldenhome vs. China Merchants Bank |
| Bank of XiAn vs. HeNan Splendor Science | Bank of XiAn vs. Soyea Technology Co | Bank of XiAn vs. Peoples Insurance of | Bank of XiAn vs. Ping An Insurance |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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