Correlation Between Piotech and Xiamen ITG
Specify exactly 2 symbols:
By analyzing existing cross correlation between Piotech Inc A and Xiamen ITG Group, you can compare the effects of market volatilities on Piotech and Xiamen ITG 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 Piotech with a short position of Xiamen ITG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Xiamen ITG.
Diversification Opportunities for Piotech and Xiamen ITG
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Piotech and Xiamen is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Xiamen ITG Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen ITG Group and Piotech 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 Piotech Inc A are associated (or correlated) with Xiamen ITG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen ITG Group has no effect on the direction of Piotech i.e., Piotech and Xiamen ITG go up and down completely randomly.
Pair Corralation between Piotech and Xiamen ITG
Assuming the 90 days trading horizon Piotech Inc A is expected to generate 2.13 times more return on investment than Xiamen ITG. However, Piotech is 2.13 times more volatile than Xiamen ITG Group. It trades about 0.08 of its potential returns per unit of risk. Xiamen ITG Group is currently generating about -0.02 per unit of risk. If you would invest 11,880 in Piotech Inc A on September 28, 2024 and sell it today you would earn a total of 4,442 from holding Piotech Inc A or generate 37.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Xiamen ITG Group
Performance |
| Timeline |
| Piotech Inc A |
| Xiamen ITG Group |
Piotech and Xiamen ITG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Xiamen ITG
The main advantage of trading using opposite Piotech and Xiamen ITG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, Xiamen ITG 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 Xiamen ITG will offset losses from the drop in Xiamen ITG's long position.| Piotech vs. Guocheng Mining Co | Piotech vs. Tianjin Silvery Dragon | Piotech vs. V V Food | Piotech vs. Jiahe Foods Industry |
| Xiamen ITG vs. China Life Insurance | Xiamen ITG vs. Cinda Securities Co | Xiamen ITG vs. Piotech Inc A | Xiamen ITG vs. Dongxing Sec Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |