Correlation Between Guangzhou Fangbang and Xinya Electronic
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Fangbang Electronics and Xinya Electronic Co, you can compare the effects of market volatilities on Guangzhou Fangbang and Xinya Electronic 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 Guangzhou Fangbang with a short position of Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Fangbang and Xinya Electronic.
Diversification Opportunities for Guangzhou Fangbang and Xinya Electronic
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangzhou and Xinya is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Fangbang Electronics and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic and Guangzhou Fangbang 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 Guangzhou Fangbang Electronics are associated (or correlated) with Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Guangzhou Fangbang i.e., Guangzhou Fangbang and Xinya Electronic go up and down completely randomly.
Pair Corralation between Guangzhou Fangbang and Xinya Electronic
Assuming the 90 days trading horizon Guangzhou Fangbang Electronics is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Fangbang Electronics is 1.66 times less risky than Xinya Electronic. The stock trades about -0.3 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,472 in Xinya Electronic Co on October 15, 2024 and sell it today you would lose (37.00) from holding Xinya Electronic Co or give up 2.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Fangbang Electronics vs. Xinya Electronic Co
Performance |
| Timeline |
| Guangzhou Fangbang |
| Xinya Electronic |
Guangzhou Fangbang and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Fangbang and Xinya Electronic
The main advantage of trading using opposite Guangzhou Fangbang and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Fangbang position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Guangzhou Fangbang vs. Hengli Industrial Development | Guangzhou Fangbang vs. Beijing Kingsoft Office | Guangzhou Fangbang vs. Huizhou Speed Wireless | Guangzhou Fangbang vs. Fibocom Wireless |
| Xinya Electronic vs. Road Environment Technology | Xinya Electronic vs. Shaanxi Broadcast TV | Xinya Electronic vs. Hainan Haiqi Transportation | Xinya Electronic vs. Fiberhome Telecommunication Technologies |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |