Correlation Between Xiangyang Automobile and Shenzhen Longsys
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Shenzhen Longsys Electronics, you can compare the effects of market volatilities on Xiangyang Automobile and Shenzhen Longsys 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 Shenzhen Longsys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Shenzhen Longsys.
Diversification Opportunities for Xiangyang Automobile and Shenzhen Longsys
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyang and Shenzhen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Shenzhen Longsys Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Longsys Ele 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 Shenzhen Longsys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Longsys Ele has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Shenzhen Longsys go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Shenzhen Longsys
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.16 times more return on investment than Shenzhen Longsys. However, Xiangyang Automobile is 1.16 times more volatile than Shenzhen Longsys Electronics. It trades about -0.01 of its potential returns per unit of risk. Shenzhen Longsys Electronics is currently generating about -0.1 per unit of risk. If you would invest 592.00 in Xiangyang Automobile Bearing on August 29, 2024 and sell it today you would lose (12.00) from holding Xiangyang Automobile Bearing or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Shenzhen Longsys Electronics
Performance |
| Timeline |
| Xiangyang Automobile |
| Shenzhen Longsys Ele |
Xiangyang Automobile and Shenzhen Longsys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Shenzhen Longsys
The main advantage of trading using opposite Xiangyang Automobile and Shenzhen Longsys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Shenzhen Longsys 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 Shenzhen Longsys will offset losses from the drop in Shenzhen Longsys' long position.| Xiangyang Automobile vs. Loongson Technology Corp | Xiangyang Automobile vs. Chongqing Road Bridge | Xiangyang Automobile vs. Shenzhen Fortune Trend | Xiangyang Automobile vs. Wuhan Xianglong Power |
| Shenzhen Longsys vs. Guangzhou Ruoyuchen Information | Shenzhen Longsys vs. Cofoe Medical Technology | Shenzhen Longsys vs. Northking Information Technology | Shenzhen Longsys vs. Xian International Medical |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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