Correlation Between Xiangyang Automobile and Changjiang Publishing
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Changjiang Publishing Media, you can compare the effects of market volatilities on Xiangyang Automobile and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Changjiang Publishing.
Diversification Opportunities for Xiangyang Automobile and Changjiang Publishing
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xiangyang and Changjiang is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Changjiang Publishing
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.71 times more return on investment than Changjiang Publishing. However, Xiangyang Automobile is 1.71 times more volatile than Changjiang Publishing Media. It trades about 0.03 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about 0.0 per unit of risk. If you would invest 567.00 in Xiangyang Automobile Bearing on September 4, 2024 and sell it today you would earn a total of 60.00 from holding Xiangyang Automobile Bearing or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Changjiang Publishing Media
Performance |
| Timeline |
| Xiangyang Automobile |
| Changjiang Publishing |
Xiangyang Automobile and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Changjiang Publishing
The main advantage of trading using opposite Xiangyang Automobile and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| Xiangyang Automobile vs. Cultural Investment Holdings | Xiangyang Automobile vs. Gome Telecom Equipment | Xiangyang Automobile vs. Bus Online Co | Xiangyang Automobile vs. Holitech Technology 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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