Correlation Between Xiamen Goldenhome and Yunnan Jianzhijia
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on Xiamen Goldenhome and Yunnan Jianzhijia 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 Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Yunnan Jianzhijia.
Diversification Opportunities for Xiamen Goldenhome and Yunnan Jianzhijia
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiamen and Yunnan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Yunnan Jianzhijia Health Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Jianzhijia 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 Yunnan Jianzhijia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Jianzhijia has no effect on the direction of Xiamen Goldenhome i.e., Xiamen Goldenhome and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Yunnan Jianzhijia
Assuming the 90 days trading horizon Xiamen Goldenhome is expected to generate 4.03 times less return on investment than Yunnan Jianzhijia. But when comparing it to its historical volatility, Xiamen Goldenhome Co is 1.79 times less risky than Yunnan Jianzhijia. It trades about 0.06 of its potential returns per unit of risk. Yunnan Jianzhijia Health Chain is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 2,020 in Yunnan Jianzhijia Health Chain on December 11, 2024 and sell it today you would earn a total of 241.00 from holding Yunnan Jianzhijia Health Chain or generate 11.93% 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. Yunnan Jianzhijia Health Chain
Performance |
Timeline |
Xiamen Goldenhome |
Yunnan Jianzhijia |
Xiamen Goldenhome and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiamen Goldenhome and Yunnan Jianzhijia
The main advantage of trading using opposite Xiamen Goldenhome and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome position performs unexpectedly, Yunnan Jianzhijia 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 Yunnan Jianzhijia will offset losses from the drop in Yunnan Jianzhijia's long position.Xiamen Goldenhome vs. Northking Information Technology | Xiamen Goldenhome vs. A Zenith Home Furnishings | Xiamen Goldenhome vs. Yonghui Superstores Co | Xiamen Goldenhome vs. Beijing Kingsoft Office |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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