Correlation Between Xiangyang Automobile and Offshore Oil
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Offshore Oil Engineering, you can compare the effects of market volatilities on Xiangyang Automobile and Offshore Oil 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 Offshore Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Offshore Oil.
Diversification Opportunities for Xiangyang Automobile and Offshore Oil
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangyang and Offshore is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Offshore Oil Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offshore Oil Engineering 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 Offshore Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offshore Oil Engineering has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Offshore Oil go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Offshore Oil
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 2.57 times more return on investment than Offshore Oil. However, Xiangyang Automobile is 2.57 times more volatile than Offshore Oil Engineering. It trades about -0.01 of its potential returns per unit of risk. Offshore Oil Engineering is currently generating about -0.13 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Offshore Oil Engineering
Performance |
| Timeline |
| Xiangyang Automobile |
| Offshore Oil Engineering |
Xiangyang Automobile and Offshore Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Offshore Oil
The main advantage of trading using opposite Xiangyang Automobile and Offshore Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Offshore Oil 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 Offshore Oil will offset losses from the drop in Offshore Oil's 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 |
| Offshore Oil vs. Heren Health Co | Offshore Oil vs. RoadMain T Co | Offshore Oil vs. Meinian Onehealth Healthcare | Offshore Oil vs. Dezhan HealthCare Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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