Correlation Between Xiamen Goldenhome and Nanjing OLO
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Nanjing OLO Home, you can compare the effects of market volatilities on Xiamen Goldenhome and Nanjing OLO 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 Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Nanjing OLO.
Diversification Opportunities for Xiamen Goldenhome and Nanjing OLO
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Nanjing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Nanjing OLO Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing OLO Home 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 Nanjing OLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing OLO Home has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Nanjing OLO go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Nanjing OLO
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to generate 0.78 times more return on investment than Nanjing OLO. However, Xiamen Goldenhome Co is 1.28 times less risky than Nanjing OLO. It trades about 0.0 of its potential returns per unit of risk. Nanjing OLO Home is currently generating about -0.02 per unit of risk. If you would invest 2,446 in Xiamen Goldenhome Co on September 20, 2024 and sell it today you would lose (246.00) from holding Xiamen Goldenhome Co or give up 10.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xiamen Goldenhome Co vs. Nanjing OLO Home
Performance |
Timeline |
Xiamen Goldenhome |
Nanjing OLO Home |
Xiamen Goldenhome and Nanjing OLO Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiamen Goldenhome and Nanjing OLO
The main advantage of trading using opposite Xiamen Goldenhome and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Nanjing OLO 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 Nanjing OLO will offset losses from the drop in Nanjing OLO's long position.Xiamen Goldenhome vs. Lutian Machinery Co | Xiamen Goldenhome vs. China Longyuan Power | Xiamen Goldenhome vs. PetroChina Co Ltd | Xiamen Goldenhome vs. Bank of China |
Nanjing OLO vs. Beijing Sanyuan Foods | Nanjing OLO vs. HaiXin Foods Co | Nanjing OLO vs. Ligao Foods CoLtd | Nanjing OLO vs. Xiamen Bank Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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