Correlation Between Xiangyang Automobile and Sino Wealth
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Sino Wealth Electronic, you can compare the effects of market volatilities on Xiangyang Automobile and Sino Wealth 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 Sino Wealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Sino Wealth.
Diversification Opportunities for Xiangyang Automobile and Sino Wealth
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyang and Sino is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Sino Wealth Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Wealth Electronic 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 Sino Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Wealth Electronic has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Sino Wealth go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Sino Wealth
Assuming the 90 days trading horizon Xiangyang Automobile is expected to generate 1.1 times less return on investment than Sino Wealth. But when comparing it to its historical volatility, Xiangyang Automobile Bearing is 1.13 times less risky than Sino Wealth. It trades about 0.14 of its potential returns per unit of risk. Sino Wealth Electronic is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,757 in Sino Wealth Electronic on August 29, 2024 and sell it today you would earn a total of 666.00 from holding Sino Wealth Electronic or generate 37.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Sino Wealth Electronic
Performance |
| Timeline |
| Xiangyang Automobile |
| Sino Wealth Electronic |
Xiangyang Automobile and Sino Wealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Sino Wealth
The main advantage of trading using opposite Xiangyang Automobile and Sino Wealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Sino Wealth 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 Sino Wealth will offset losses from the drop in Sino Wealth's long position.| Xiangyang Automobile vs. Agricultural Bank of | Xiangyang Automobile vs. Industrial and Commercial | Xiangyang Automobile vs. Bank of China | Xiangyang Automobile vs. China Construction Bank |
| Sino Wealth vs. Shenzhen Kexin Communication | Sino Wealth vs. Shanghai Yanpu Metal | Sino Wealth vs. Dalian Thermal Power | Sino Wealth vs. Beijing HuaYuanYiTong Thermal |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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