Correlation Between XCMG Construction and Hubeiyichang Transportation
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By analyzing existing cross correlation between XCMG Construction Machinery and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on XCMG Construction and Hubeiyichang Transportation 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 XCMG Construction with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of XCMG Construction and Hubeiyichang Transportation.
Diversification Opportunities for XCMG Construction and Hubeiyichang Transportation
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between XCMG and Hubeiyichang is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding XCMG Construction Machinery and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and XCMG Construction 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 XCMG Construction Machinery are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of XCMG Construction i.e., XCMG Construction and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between XCMG Construction and Hubeiyichang Transportation
Assuming the 90 days trading horizon XCMG Construction Machinery is expected to generate 1.47 times more return on investment than Hubeiyichang Transportation. However, XCMG Construction is 1.47 times more volatile than Hubeiyichang Transportation Group. It trades about 0.47 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about -0.18 per unit of risk. If you would invest 764.00 in XCMG Construction Machinery on November 28, 2024 and sell it today you would earn a total of 115.00 from holding XCMG Construction Machinery or generate 15.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XCMG Construction Machinery vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| XCMG Construction |
| Hubeiyichang Transportation |
XCMG Construction and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XCMG Construction and Hubeiyichang Transportation
The main advantage of trading using opposite XCMG Construction and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XCMG Construction position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| XCMG Construction vs. iSoftStone Information Technology | XCMG Construction vs. Beijing Kaiwen Education | XCMG Construction vs. Tangel Publishing | XCMG Construction vs. Qtone Education Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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