Correlation Between Everdisplay Optronics and Xiamen Bank
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By analyzing existing cross correlation between Everdisplay Optronics Shanghai and Xiamen Bank Co, you can compare the effects of market volatilities on Everdisplay Optronics 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 Everdisplay Optronics with a short position of Xiamen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everdisplay Optronics and Xiamen Bank.
Diversification Opportunities for Everdisplay Optronics and Xiamen Bank
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Everdisplay and Xiamen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Everdisplay Optronics Shanghai and Xiamen Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Bank and Everdisplay Optronics 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 Everdisplay Optronics Shanghai 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 Everdisplay Optronics i.e., Everdisplay Optronics and Xiamen Bank go up and down completely randomly.
Pair Corralation between Everdisplay Optronics and Xiamen Bank
Assuming the 90 days trading horizon Everdisplay Optronics is expected to generate 1.14 times less return on investment than Xiamen Bank. In addition to that, Everdisplay Optronics is 1.27 times more volatile than Xiamen Bank Co. It trades about 0.12 of its total potential returns per unit of risk. Xiamen Bank Co is currently generating about 0.17 per unit of volatility. If you would invest 466.00 in Xiamen Bank Co on September 5, 2024 and sell it today you would earn a total of 110.00 from holding Xiamen Bank Co or generate 23.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Everdisplay Optronics Shanghai vs. Xiamen Bank Co
Performance |
Timeline |
Everdisplay Optronics |
Xiamen Bank |
Everdisplay Optronics and Xiamen Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Everdisplay Optronics and Xiamen Bank
The main advantage of trading using opposite Everdisplay Optronics and Xiamen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everdisplay Optronics 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.Everdisplay Optronics vs. PetroChina Co Ltd | Everdisplay Optronics vs. China Mobile Limited | Everdisplay Optronics vs. CNOOC Limited | Everdisplay Optronics vs. Ping An Insurance |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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