Correlation Between Xiangyang Automobile and China Longyuan
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and China Longyuan Power, you can compare the effects of market volatilities on Xiangyang Automobile and China Longyuan 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 China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and China Longyuan.
Diversification Opportunities for Xiangyang Automobile and China Longyuan
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangyang and China is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power 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 China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and China Longyuan go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and China Longyuan
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.77 times more return on investment than China Longyuan. However, Xiangyang Automobile is 1.77 times more volatile than China Longyuan Power. It trades about 0.04 of its potential returns per unit of risk. China Longyuan Power is currently generating about -0.01 per unit of risk. If you would invest 510.00 in Xiangyang Automobile Bearing on August 28, 2024 and sell it today you would earn a total of 80.00 from holding Xiangyang Automobile Bearing or generate 15.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. China Longyuan Power
Performance |
| Timeline |
| Xiangyang Automobile |
| China Longyuan Power |
Xiangyang Automobile and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and China Longyuan
The main advantage of trading using opposite Xiangyang Automobile and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, China Longyuan 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 China Longyuan will offset losses from the drop in China Longyuan's long position.| Xiangyang Automobile vs. Loongson Technology Corp | Xiangyang Automobile vs. Chongqing Road Bridge | Xiangyang Automobile vs. Shenzhen Fortune Trend | Xiangyang Automobile vs. Wuhan Xianglong Power |
| China Longyuan vs. Sinomach General Machinery | China Longyuan vs. Zijin Mining Group | China Longyuan vs. Zhongshan Public Utilities | China Longyuan vs. Shenzhen Zhongzhuang Construction |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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