Correlation Between Xiangyang Automobile and Ningbo Homelink
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Ningbo Homelink Eco iTech, you can compare the effects of market volatilities on Xiangyang Automobile and Ningbo Homelink 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 Ningbo Homelink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Ningbo Homelink.
Diversification Opportunities for Xiangyang Automobile and Ningbo Homelink
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyang and Ningbo is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Ningbo Homelink Eco iTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Homelink Eco 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 Ningbo Homelink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Homelink Eco has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Ningbo Homelink go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Ningbo Homelink
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to under-perform the Ningbo Homelink. In addition to that, Xiangyang Automobile is 1.62 times more volatile than Ningbo Homelink Eco iTech. It trades about -0.23 of its total potential returns per unit of risk. Ningbo Homelink Eco iTech is currently generating about -0.09 per unit of volatility. If you would invest 1,750 in Ningbo Homelink Eco iTech on October 12, 2024 and sell it today you would lose (120.00) from holding Ningbo Homelink Eco iTech or give up 6.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Ningbo Homelink Eco iTech
Performance |
| Timeline |
| Xiangyang Automobile |
| Ningbo Homelink Eco |
Xiangyang Automobile and Ningbo Homelink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Ningbo Homelink
The main advantage of trading using opposite Xiangyang Automobile and Ningbo Homelink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Ningbo Homelink 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 Ningbo Homelink will offset losses from the drop in Ningbo Homelink's long position.| Xiangyang Automobile vs. Eastroc Beverage Group | Xiangyang Automobile vs. Tianjin Ruixin Technology | Xiangyang Automobile vs. Bangyan Technology Co | Xiangyang Automobile vs. HaiXin Foods Co |
| Ningbo Homelink vs. Fibocom Wireless | Ningbo Homelink vs. Iat Automobile Technology | Ningbo Homelink vs. Nanjing Putian Telecommunications | Ningbo Homelink vs. Xiangyang Automobile Bearing |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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