Correlation Between Xiamen ITG and Foxconn Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiamen ITG Group and Foxconn Industrial Internet, you can compare the effects of market volatilities on Xiamen ITG and Foxconn Industrial 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 ITG with a short position of Foxconn Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen ITG and Foxconn Industrial.
Diversification Opportunities for Xiamen ITG and Foxconn Industrial
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiamen and Foxconn is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen ITG Group and Foxconn Industrial Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foxconn Industrial and Xiamen ITG 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 ITG Group are associated (or correlated) with Foxconn Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foxconn Industrial has no effect on the direction of Xiamen ITG i.e., Xiamen ITG and Foxconn Industrial go up and down completely randomly.
Pair Corralation between Xiamen ITG and Foxconn Industrial
Assuming the 90 days trading horizon Xiamen ITG Group is expected to generate 0.62 times more return on investment than Foxconn Industrial. However, Xiamen ITG Group is 1.6 times less risky than Foxconn Industrial. It trades about 0.01 of its potential returns per unit of risk. Foxconn Industrial Internet is currently generating about 0.0 per unit of risk. If you would invest 663.00 in Xiamen ITG Group on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Xiamen ITG Group or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xiamen ITG Group vs. Foxconn Industrial Internet
Performance |
Timeline |
Xiamen ITG Group |
Foxconn Industrial |
Xiamen ITG and Foxconn Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiamen ITG and Foxconn Industrial
The main advantage of trading using opposite Xiamen ITG and Foxconn Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen ITG position performs unexpectedly, Foxconn Industrial 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 Foxconn Industrial will offset losses from the drop in Foxconn Industrial's long position.Xiamen ITG vs. China Life Insurance | Xiamen ITG vs. Cinda Securities Co | Xiamen ITG vs. Piotech Inc A | Xiamen ITG vs. Dongxing Sec Co |
Foxconn Industrial vs. Industrial and Commercial | Foxconn Industrial vs. China Construction Bank | Foxconn Industrial vs. Agricultural Bank of | Foxconn Industrial vs. Bank of China |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |