Correlation Between Xiamen Goldenhome and Vohringer Home
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Vohringer Home Technology, you can compare the effects of market volatilities on Xiamen Goldenhome and Vohringer Home 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 Vohringer Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Vohringer Home.
Diversification Opportunities for Xiamen Goldenhome and Vohringer Home
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiamen and Vohringer is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Vohringer Home Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vohringer Home Technology 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 Vohringer Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vohringer Home Technology has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Vohringer Home go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Vohringer Home
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the Vohringer Home. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Goldenhome Co is 1.05 times less risky than Vohringer Home. The stock trades about -0.01 of its potential returns per unit of risk. The Vohringer Home Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 527.00 in Vohringer Home Technology on September 3, 2024 and sell it today you would lose (32.00) from holding Vohringer Home Technology or give up 6.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Vohringer Home Technology
Performance |
| Timeline |
| Xiamen Goldenhome |
| Vohringer Home Technology |
Xiamen Goldenhome and Vohringer Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Vohringer Home
The main advantage of trading using opposite Xiamen Goldenhome and Vohringer Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Vohringer Home 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 Vohringer Home will offset losses from the drop in Vohringer Home's long position.| Xiamen Goldenhome vs. PetroChina Co Ltd | Xiamen Goldenhome vs. China Mobile Limited | Xiamen Goldenhome vs. Industrial and Commercial | Xiamen Goldenhome vs. China Life Insurance |
| Vohringer Home vs. Zijin Mining Group | Vohringer Home vs. Baoshan Iron Steel | Vohringer Home vs. Rongsheng Petrochemical Co | Vohringer Home vs. Hoshine Silicon Ind |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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