Correlation Between XCMG Construction and Grandblue Environment
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By analyzing existing cross correlation between XCMG Construction Machinery and Grandblue Environment Co, you can compare the effects of market volatilities on XCMG Construction and Grandblue Environment 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 Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of XCMG Construction and Grandblue Environment.
Diversification Opportunities for XCMG Construction and Grandblue Environment
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XCMG and Grandblue is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding XCMG Construction Machinery and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment 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 Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of XCMG Construction i.e., XCMG Construction and Grandblue Environment go up and down completely randomly.
Pair Corralation between XCMG Construction and Grandblue Environment
Assuming the 90 days trading horizon XCMG Construction Machinery is expected to generate 1.63 times more return on investment than Grandblue Environment. However, XCMG Construction is 1.63 times more volatile than Grandblue Environment Co. It trades about 0.05 of its potential returns per unit of risk. Grandblue Environment Co is currently generating about 0.05 per unit of risk. If you would invest 499.00 in XCMG Construction Machinery on September 25, 2024 and sell it today you would earn a total of 258.00 from holding XCMG Construction Machinery or generate 51.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
XCMG Construction Machinery vs. Grandblue Environment Co
Performance |
| Timeline |
| XCMG Construction |
| Grandblue Environment |
XCMG Construction and Grandblue Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XCMG Construction and Grandblue Environment
The main advantage of trading using opposite XCMG Construction and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XCMG Construction position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment's long position.| XCMG Construction vs. Industrial and Commercial | XCMG Construction vs. Agricultural Bank of | XCMG Construction vs. China Construction Bank | XCMG Construction vs. Bank of China |
| Grandblue Environment vs. Jiangsu Yanghe Brewery | Grandblue Environment vs. JuneYao Dairy Co | Grandblue Environment vs. Zhengzhou Qianweiyangchu Food | Grandblue Environment vs. Great Sun Foods Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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