Correlation Between Allwin Telecommunicatio and Xilinmen Furniture
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By analyzing existing cross correlation between Allwin Telecommunication Co and Xilinmen Furniture Co, you can compare the effects of market volatilities on Allwin Telecommunicatio and Xilinmen Furniture 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 Allwin Telecommunicatio with a short position of Xilinmen Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and Xilinmen Furniture.
Diversification Opportunities for Allwin Telecommunicatio and Xilinmen Furniture
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allwin and Xilinmen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co and Xilinmen Furniture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilinmen Furniture and Allwin Telecommunicatio 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 Allwin Telecommunication Co are associated (or correlated) with Xilinmen Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilinmen Furniture has no effect on the direction of Allwin Telecommunicatio i.e., Allwin Telecommunicatio and Xilinmen Furniture go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and Xilinmen Furniture
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to generate 1.52 times more return on investment than Xilinmen Furniture. However, Allwin Telecommunicatio is 1.52 times more volatile than Xilinmen Furniture Co. It trades about 0.11 of its potential returns per unit of risk. Xilinmen Furniture Co is currently generating about 0.09 per unit of risk. If you would invest 493.00 in Allwin Telecommunication Co on September 25, 2024 and sell it today you would earn a total of 138.00 from holding Allwin Telecommunication Co or generate 27.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Allwin Telecommunication Co vs. Xilinmen Furniture Co
Performance |
Timeline |
Allwin Telecommunicatio |
Xilinmen Furniture |
Allwin Telecommunicatio and Xilinmen Furniture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allwin Telecommunicatio and Xilinmen Furniture
The main advantage of trading using opposite Allwin Telecommunicatio and Xilinmen Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio position performs unexpectedly, Xilinmen Furniture 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 Xilinmen Furniture will offset losses from the drop in Xilinmen Furniture's long position.Allwin Telecommunicatio vs. Industrial and Commercial | Allwin Telecommunicatio vs. Agricultural Bank of | Allwin Telecommunicatio vs. China Construction Bank | Allwin Telecommunicatio vs. Bank of China |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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