Correlation Between Xinya Electronic and Dongxing Sec
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By analyzing existing cross correlation between Xinya Electronic Co and Dongxing Sec Co, you can compare the effects of market volatilities on Xinya Electronic and Dongxing Sec 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 Xinya Electronic with a short position of Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Dongxing Sec.
Diversification Opportunities for Xinya Electronic and Dongxing Sec
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xinya and Dongxing is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic Co and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec and Xinya Electronic 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 Xinya Electronic Co are associated (or correlated) with Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Xinya Electronic i.e., Xinya Electronic and Dongxing Sec go up and down completely randomly.
Pair Corralation between Xinya Electronic and Dongxing Sec
Assuming the 90 days trading horizon Xinya Electronic Co is expected to generate 1.08 times more return on investment than Dongxing Sec. However, Xinya Electronic is 1.08 times more volatile than Dongxing Sec Co. It trades about 0.11 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.08 per unit of risk. If you would invest 1,232 in Xinya Electronic Co on November 3, 2024 and sell it today you would earn a total of 563.00 from holding Xinya Electronic Co or generate 45.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinya Electronic Co vs. Dongxing Sec Co
Performance |
| Timeline |
| Xinya Electronic |
| Dongxing Sec |
Xinya Electronic and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinya Electronic and Dongxing Sec
The main advantage of trading using opposite Xinya Electronic and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Xinya Electronic vs. Suzhou Douson Drilling | Xinya Electronic vs. Capitalonline Data Service | Xinya Electronic vs. Jiugui Liquor Co | Xinya Electronic vs. Hubei Geoway Investment |
| Dongxing Sec vs. Nanya New Material | Dongxing Sec vs. Jilin OLED Material | Dongxing Sec vs. Ningbo Ligong Online | Dongxing Sec vs. Anhui Gujing Distillery |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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