Correlation Between Ethereum and Xiamen Kehua
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By analyzing existing cross correlation between Ethereum and Xiamen Kehua Hengsheng, you can compare the effects of market volatilities on Ethereum and Xiamen Kehua 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 Ethereum with a short position of Xiamen Kehua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ethereum and Xiamen Kehua.
Diversification Opportunities for Ethereum and Xiamen Kehua
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ethereum and Xiamen is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and Xiamen Kehua Hengsheng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Kehua Hengsheng and Ethereum 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 Ethereum are associated (or correlated) with Xiamen Kehua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Kehua Hengsheng has no effect on the direction of Ethereum i.e., Ethereum and Xiamen Kehua go up and down completely randomly.
Pair Corralation between Ethereum and Xiamen Kehua
Assuming the 90 days trading horizon Ethereum is expected to generate 10.34 times less return on investment than Xiamen Kehua. In addition to that, Ethereum is 1.12 times more volatile than Xiamen Kehua Hengsheng. It trades about 0.0 of its total potential returns per unit of risk. Xiamen Kehua Hengsheng is currently generating about 0.05 per unit of volatility. If you would invest 2,331 in Xiamen Kehua Hengsheng on October 18, 2024 and sell it today you would earn a total of 708.00 from holding Xiamen Kehua Hengsheng or generate 30.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 71.85% |
Values | Daily Returns |
Ethereum vs. Xiamen Kehua Hengsheng
Performance |
Timeline |
Ethereum |
Xiamen Kehua Hengsheng |
Ethereum and Xiamen Kehua Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ethereum and Xiamen Kehua
The main advantage of trading using opposite Ethereum and Xiamen Kehua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ethereum position performs unexpectedly, Xiamen Kehua 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 Kehua will offset losses from the drop in Xiamen Kehua's long position.The idea behind Ethereum and Xiamen Kehua Hengsheng pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.Xiamen Kehua vs. China Petroleum Chemical | Xiamen Kehua vs. PetroChina Co Ltd | Xiamen Kehua vs. China State Construction | Xiamen Kehua vs. China Railway 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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