Correlation Between Chengdu Spaceon and Xiamen Bank
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Xiamen Bank Co, you can compare the effects of market volatilities on Chengdu Spaceon and Xiamen Bank 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 Chengdu Spaceon with a short position of Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Xiamen Bank.
Diversification Opportunities for Chengdu Spaceon and Xiamen Bank
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Xiamen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank and Chengdu Spaceon 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 Chengdu Spaceon Electronics are associated (or correlated) with Xiamen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Bank has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and Xiamen Bank go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Xiamen Bank
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to generate 1.54 times more return on investment than Xiamen Bank. However, Chengdu Spaceon is 1.54 times more volatile than Xiamen Bank Co. It trades about 0.2 of its potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.19 per unit of risk. If you would invest 1,191 in Chengdu Spaceon Electronics on September 10, 2024 and sell it today you would earn a total of 532.00 from holding Chengdu Spaceon Electronics or generate 44.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Chengdu Spaceon Electronics vs. Xiamen Bank Co
Performance |
Timeline |
Chengdu Spaceon Elec |
Xiamen Bank |
Chengdu Spaceon and Xiamen Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengdu Spaceon and Xiamen Bank
The main advantage of trading using opposite Chengdu Spaceon and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, Xiamen Bank 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 Xiamen Bank will offset losses from the drop in Xiamen Bank's long position.Chengdu Spaceon vs. Guangzhou Shangpin Home | Chengdu Spaceon vs. Lander Sports Development | Chengdu Spaceon vs. China Sports Industry | Chengdu Spaceon vs. Shandong Homey Aquatic |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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