Correlation Between Xiangyang Automobile and King Strong
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and King Strong New Material, you can compare the effects of market volatilities on Xiangyang Automobile and King Strong 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 King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and King Strong.
Diversification Opportunities for Xiangyang Automobile and King Strong
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangyang and King is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and King Strong go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and King Strong
Assuming the 90 days trading horizon Xiangyang Automobile is expected to generate 2.25 times less return on investment than King Strong. In addition to that, Xiangyang Automobile is 1.15 times more volatile than King Strong New Material. It trades about 0.01 of its total potential returns per unit of risk. King Strong New Material is currently generating about 0.04 per unit of volatility. If you would invest 1,704 in King Strong New Material on October 18, 2024 and sell it today you would earn a total of 296.00 from holding King Strong New Material or generate 17.37% 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. King Strong New Material
Performance |
| Timeline |
| Xiangyang Automobile |
| King Strong New |
Xiangyang Automobile and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and King Strong
The main advantage of trading using opposite Xiangyang Automobile and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong's long position.| Xiangyang Automobile vs. Jiamei Food Packaging | Xiangyang Automobile vs. Qtone Education Group | Xiangyang Automobile vs. Anji Foodstuff Co | Xiangyang Automobile vs. Jiajia Food Group |
| King Strong vs. Shandong Sinoglory Health | King Strong vs. Shantou Wanshun Package | King Strong vs. Goodwill E Health | King Strong vs. Sanbo Hospital Management |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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