Correlation Between Xiangyang Automobile and Yingde Greatchem
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Xiangyang Automobile and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Yingde Greatchem.
Diversification Opportunities for Xiangyang Automobile and Yingde Greatchem
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyang and Yingde is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Yingde Greatchem
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.16 times more return on investment than Yingde Greatchem. However, Xiangyang Automobile is 1.16 times more volatile than Yingde Greatchem Chemicals. It trades about 0.03 of its potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about -0.02 per unit of risk. If you would invest 533.00 in Xiangyang Automobile Bearing on August 31, 2024 and sell it today you would earn a total of 66.00 from holding Xiangyang Automobile Bearing or generate 12.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.94% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Xiangyang Automobile |
| Yingde Greatchem Che |
Xiangyang Automobile and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Yingde Greatchem
The main advantage of trading using opposite Xiangyang Automobile and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem's long position.| Xiangyang Automobile vs. China State Construction | Xiangyang Automobile vs. China Merchants Shekou | Xiangyang Automobile vs. Huafa Industrial Co | Xiangyang Automobile vs. China International Capital |
| Yingde Greatchem vs. Xinjiang Communications Construction | Yingde Greatchem vs. Xiangyang Automobile Bearing | Yingde Greatchem vs. Tianshan Aluminum Group | Yingde Greatchem vs. Shenzhen Kexin Communication |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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