Correlation Between Sichuan Yahua and Xiamen CD
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sichuan Yahua Industrial and Xiamen CD, you can compare the effects of market volatilities on Sichuan Yahua and Xiamen CD 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 Sichuan Yahua with a short position of Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Xiamen CD.
Diversification Opportunities for Sichuan Yahua and Xiamen CD
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Xiamen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD and Sichuan Yahua 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 Sichuan Yahua Industrial are associated (or correlated) with Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and Xiamen CD go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Xiamen CD
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.12 times more return on investment than Xiamen CD. However, Sichuan Yahua is 1.12 times more volatile than Xiamen CD. It trades about 0.2 of its potential returns per unit of risk. Xiamen CD is currently generating about 0.18 per unit of risk. If you would invest 871.00 in Sichuan Yahua Industrial on September 12, 2024 and sell it today you would earn a total of 393.00 from holding Sichuan Yahua Industrial or generate 45.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Sichuan Yahua Industrial vs. Xiamen CD
Performance |
Timeline |
Sichuan Yahua Industrial |
Xiamen CD |
Sichuan Yahua and Xiamen CD Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sichuan Yahua and Xiamen CD
The main advantage of trading using opposite Sichuan Yahua and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, Xiamen CD 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 CD will offset losses from the drop in Xiamen CD's long position.Sichuan Yahua vs. Zijin Mining Group | Sichuan Yahua vs. Wanhua Chemical Group | Sichuan Yahua vs. Baoshan Iron Steel | Sichuan Yahua vs. Rongsheng Petrochemical Co |
Xiamen CD vs. Epoxy Base Electronic | Xiamen CD vs. Leaguer Shenzhen MicroElectronics | Xiamen CD vs. Bomin Electronics Co | Xiamen CD vs. Integrated Electronic Systems |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
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 | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |