Correlation Between Beijing Roborock and Xiamen Goldenhome
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By analyzing existing cross correlation between Beijing Roborock Technology and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Beijing Roborock and Xiamen Goldenhome 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 Beijing Roborock with a short position of Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Xiamen Goldenhome.
Diversification Opportunities for Beijing Roborock and Xiamen Goldenhome
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Xiamen is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome and Beijing Roborock 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 Beijing Roborock Technology are associated (or correlated) with Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Beijing Roborock and Xiamen Goldenhome
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to generate 1.26 times more return on investment than Xiamen Goldenhome. However, Beijing Roborock is 1.26 times more volatile than Xiamen Goldenhome Co. It trades about 0.09 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.05 per unit of risk. If you would invest 22,030 in Beijing Roborock Technology on November 3, 2024 and sell it today you would earn a total of 849.00 from holding Beijing Roborock Technology or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Xiamen Goldenhome Co
Performance |
| Timeline |
| Beijing Roborock Tec |
| Xiamen Goldenhome |
Beijing Roborock and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Xiamen Goldenhome
The main advantage of trading using opposite Beijing Roborock and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Xiamen Goldenhome 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 Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| Beijing Roborock vs. Liaoning Chengda Biotechnology | Beijing Roborock vs. Jinhe Biotechnology Co | Beijing Roborock vs. Hengli Industrial Development | Beijing Roborock vs. Zhengzhou Coal Mining |
| Xiamen Goldenhome vs. Henan Shuanghui Investment | Xiamen Goldenhome vs. Hunan Investment Group | Xiamen Goldenhome vs. Caihong Display Devices | Xiamen Goldenhome vs. Chengdu Xingrong Investment |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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