Correlation Between Everdisplay Optronics and Xiamen Goldenhome
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By analyzing existing cross correlation between Everdisplay Optronics Shanghai and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Everdisplay Optronics 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 Everdisplay Optronics with a short position of Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everdisplay Optronics and Xiamen Goldenhome.
Diversification Opportunities for Everdisplay Optronics and Xiamen Goldenhome
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Everdisplay and Xiamen is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Everdisplay Optronics Shanghai and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome and Everdisplay Optronics 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 Everdisplay Optronics Shanghai 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 Everdisplay Optronics i.e., Everdisplay Optronics and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Everdisplay Optronics and Xiamen Goldenhome
Assuming the 90 days trading horizon Everdisplay Optronics Shanghai is expected to generate 0.68 times more return on investment than Xiamen Goldenhome. However, Everdisplay Optronics Shanghai is 1.47 times less risky than Xiamen Goldenhome. It trades about -0.2 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.14 per unit of risk. If you would invest 236.00 in Everdisplay Optronics Shanghai on October 26, 2024 and sell it today you would lose (14.00) from holding Everdisplay Optronics Shanghai or give up 5.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everdisplay Optronics Shanghai vs. Xiamen Goldenhome Co
Performance |
| Timeline |
| Everdisplay Optronics |
| Xiamen Goldenhome |
Everdisplay Optronics and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everdisplay Optronics and Xiamen Goldenhome
The main advantage of trading using opposite Everdisplay Optronics and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everdisplay Optronics 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.| Everdisplay Optronics vs. Chengdu Kanghua Biological | Everdisplay Optronics vs. Suzhou Novoprotein Scientific | Everdisplay Optronics vs. Aluminum Corp of | Everdisplay Optronics vs. COL Digital Publishing |
| Xiamen Goldenhome vs. Ningbo Homelink Eco iTech | Xiamen Goldenhome vs. Everdisplay Optronics Shanghai | Xiamen Goldenhome vs. China Sports Industry | Xiamen Goldenhome vs. Qumei Furniture Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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