Correlation Between Xiangyang Automobile and Jiangsu Zhongtian
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Xiangyang Automobile and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Jiangsu Zhongtian.
Diversification Opportunities for Xiangyang Automobile and Jiangsu Zhongtian
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Xiangyang and Jiangsu is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Jiangsu Zhongtian
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 2.72 times more return on investment than Jiangsu Zhongtian. However, Xiangyang Automobile is 2.72 times more volatile than Jiangsu Zhongtian Technology. It trades about 0.03 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about -0.21 per unit of risk. If you would invest 599.00 in Xiangyang Automobile Bearing on October 30, 2024 and sell it today you would earn a total of 13.00 from holding Xiangyang Automobile Bearing or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Xiangyang Automobile |
| Jiangsu Zhongtian |
Xiangyang Automobile and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Jiangsu Zhongtian
The main advantage of trading using opposite Xiangyang Automobile and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Xiangyang Automobile vs. Linewell Software Co | Xiangyang Automobile vs. Lootom Telcovideo Network | Xiangyang Automobile vs. China Eastern Airlines | Xiangyang Automobile vs. Shanghai Shuixing Home |
| Jiangsu Zhongtian vs. Jiangsu Broadcasting Cable | Jiangsu Zhongtian vs. Longjian Road Bridge | Jiangsu Zhongtian vs. Chengdu B ray Media | Jiangsu Zhongtian vs. Guangdong Jinma Entertainment |
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 Stocks Directory module to find actively traded stocks across global markets.
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