Correlation Between Xiangyang Automobile and Cangzhou Mingzhu
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on Xiangyang Automobile and Cangzhou Mingzhu 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 Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Cangzhou Mingzhu.
Diversification Opportunities for Xiangyang Automobile and Cangzhou Mingzhu
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangyang and Cangzhou is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Cangzhou Mingzhu
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to under-perform the Cangzhou Mingzhu. In addition to that, Xiangyang Automobile is 2.53 times more volatile than Cangzhou Mingzhu Plastic. It trades about -0.16 of its total potential returns per unit of risk. Cangzhou Mingzhu Plastic is currently generating about -0.14 per unit of volatility. If you would invest 355.00 in Cangzhou Mingzhu Plastic on November 3, 2024 and sell it today you would lose (14.00) from holding Cangzhou Mingzhu Plastic or give up 3.94% 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. Cangzhou Mingzhu Plastic
Performance |
| Timeline |
| Xiangyang Automobile |
| Cangzhou Mingzhu Plastic |
Xiangyang Automobile and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Cangzhou Mingzhu
The main advantage of trading using opposite Xiangyang Automobile and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu's long position.| Xiangyang Automobile vs. Chengtun Mining Group | Xiangyang Automobile vs. Zhengzhou Coal Mining | Xiangyang Automobile vs. Shaanxi Broadcast TV | Xiangyang Automobile vs. Zijin Mining Group |
| Cangzhou Mingzhu vs. YLZ Information Tech | Cangzhou Mingzhu vs. Tongling Nonferrous Metals | Cangzhou Mingzhu vs. Dawning Information Industry | Cangzhou Mingzhu vs. Shandong Hongchuang Aluminum |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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