Correlation Between Xiangyang Automobile and Centre Testing
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Centre Testing Intl, you can compare the effects of market volatilities on Xiangyang Automobile and Centre Testing 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 Centre Testing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Centre Testing.
Diversification Opportunities for Xiangyang Automobile and Centre Testing
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyang and Centre is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Centre Testing Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centre Testing Intl 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 Centre Testing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centre Testing Intl has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Centre Testing go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Centre Testing
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.78 times more return on investment than Centre Testing. However, Xiangyang Automobile is 1.78 times more volatile than Centre Testing Intl. It trades about 0.07 of its potential returns per unit of risk. Centre Testing Intl is currently generating about -0.1 per unit of risk. If you would invest 612.00 in Xiangyang Automobile Bearing on September 4, 2024 and sell it today you would earn a total of 24.00 from holding Xiangyang Automobile Bearing or generate 3.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Centre Testing Intl
Performance |
| Timeline |
| Xiangyang Automobile |
| Centre Testing Intl |
Xiangyang Automobile and Centre Testing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Centre Testing
The main advantage of trading using opposite Xiangyang Automobile and Centre Testing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Centre Testing 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 Centre Testing will offset losses from the drop in Centre Testing's long position.| Xiangyang Automobile vs. Cultural Investment Holdings | Xiangyang Automobile vs. Gome Telecom Equipment | Xiangyang Automobile vs. Bus Online Co | Xiangyang Automobile vs. Holitech Technology Co |
| Centre Testing vs. Xiangyang Automobile Bearing | Centre Testing vs. Shandong Publishing Media | Centre Testing vs. Changchun Faway Automobile | Centre Testing vs. Jiangsu Xinri E Vehicle |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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