Correlation Between Xiamen Goldenhome and Sichuan Jinshi
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Xiamen Goldenhome and Sichuan Jinshi 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 Goldenhome with a short position of Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Sichuan Jinshi.
Diversification Opportunities for Xiamen Goldenhome and Sichuan Jinshi
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiamen and Sichuan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology and Xiamen Goldenhome 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 Goldenhome Co are associated (or correlated) with Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Sichuan Jinshi
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 1.54 times more return on investment than Sichuan Jinshi. However, Xiamen Goldenhome is 1.54 times more volatile than Sichuan Jinshi Technology. It trades about 0.04 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.01 per unit of risk. If you would invest 2,020 in Xiamen Goldenhome Co on September 24, 2024 and sell it today you would earn a total of 37.00 from holding Xiamen Goldenhome Co or generate 1.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xiamen Goldenhome Co vs. Sichuan Jinshi Technology
Performance |
Timeline |
Xiamen Goldenhome |
Sichuan Jinshi Technology |
Xiamen Goldenhome and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiamen Goldenhome and Sichuan Jinshi
The main advantage of trading using opposite Xiamen Goldenhome and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.Xiamen Goldenhome vs. Agricultural Bank of | Xiamen Goldenhome vs. Industrial and Commercial | Xiamen Goldenhome vs. Bank of China | Xiamen Goldenhome vs. China Construction Bank |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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