Correlation Between Xiangyang Automobile and Shaanxi Energy
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Shaanxi Energy Investment, you can compare the effects of market volatilities on Xiangyang Automobile and Shaanxi Energy 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 Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Shaanxi Energy.
Diversification Opportunities for Xiangyang Automobile and Shaanxi Energy
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xiangyang and Shaanxi is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy 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 Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Shaanxi Energy
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.9 times more return on investment than Shaanxi Energy. However, Xiangyang Automobile is 1.9 times more volatile than Shaanxi Energy Investment. It trades about 0.11 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.03 per unit of risk. If you would invest 497.00 in Xiangyang Automobile Bearing on August 25, 2024 and sell it today you would earn a total of 85.00 from holding Xiangyang Automobile Bearing or generate 17.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Shaanxi Energy Investment
Performance |
| Timeline |
| Xiangyang Automobile |
| Shaanxi Energy Investment |
Xiangyang Automobile and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Shaanxi Energy
The main advantage of trading using opposite Xiangyang Automobile and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| Xiangyang Automobile vs. Hainan Haiqi Transportation | Xiangyang Automobile vs. China Sports Industry | Xiangyang Automobile vs. Guangdong Brandmax Marketing | Xiangyang Automobile vs. Yindu Kitchen Equipment |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Xiangyang Automobile Bearing | Shaanxi Energy vs. Suzhou Novoprotein Scientific | Shaanxi Energy vs. COL Digital Publishing |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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