Correlation Between Xiamen Jihong and Circuit Fabology
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By analyzing existing cross correlation between Xiamen Jihong Package and Circuit Fabology Microelectronics, you can compare the effects of market volatilities on Xiamen Jihong and Circuit Fabology 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 Xiamen Jihong with a short position of Circuit Fabology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Circuit Fabology.
Diversification Opportunities for Xiamen Jihong and Circuit Fabology
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Circuit is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Circuit Fabology Microelectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Circuit Fabology Mic and Xiamen Jihong 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 Xiamen Jihong Package are associated (or correlated) with Circuit Fabology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Circuit Fabology Mic has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Circuit Fabology go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Circuit Fabology
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to generate 1.29 times more return on investment than Circuit Fabology. However, Xiamen Jihong is 1.29 times more volatile than Circuit Fabology Microelectronics. It trades about 0.03 of its potential returns per unit of risk. Circuit Fabology Microelectronics is currently generating about -0.05 per unit of risk. If you would invest 1,256 in Xiamen Jihong Package on October 27, 2024 and sell it today you would earn a total of 45.00 from holding Xiamen Jihong Package or generate 3.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xiamen Jihong Package vs. Circuit Fabology Microelectron
Performance |
Timeline |
Xiamen Jihong Package |
Circuit Fabology Mic |
Xiamen Jihong and Circuit Fabology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiamen Jihong and Circuit Fabology
The main advantage of trading using opposite Xiamen Jihong and Circuit Fabology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Circuit Fabology 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 Circuit Fabology will offset losses from the drop in Circuit Fabology's long position.Xiamen Jihong vs. Southern PublishingMedia Co | ||
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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