Correlation Between Xiangyang Automobile and Vanfund Urban
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Vanfund Urban Investment, you can compare the effects of market volatilities on Xiangyang Automobile and Vanfund Urban 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 Xiangyang Automobile with a short position of Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Vanfund Urban.
Diversification Opportunities for Xiangyang Automobile and Vanfund Urban
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangyang and Vanfund is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment and Xiangyang Automobile 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 Xiangyang Automobile Bearing are associated (or correlated) with Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Vanfund Urban go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Vanfund Urban
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.47 times more return on investment than Vanfund Urban. However, Xiangyang Automobile is 1.47 times more volatile than Vanfund Urban Investment. It trades about -0.02 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about -0.21 per unit of risk. If you would invest 653.00 in Xiangyang Automobile Bearing on October 20, 2024 and sell it today you would lose (33.00) from holding Xiangyang Automobile Bearing or give up 5.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Vanfund Urban Investment
Performance |
| Timeline |
| Xiangyang Automobile |
| Vanfund Urban Investment |
Xiangyang Automobile and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Vanfund Urban
The main advantage of trading using opposite Xiangyang Automobile and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.The idea behind Xiangyang Automobile Bearing and Vanfund Urban Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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