Correlation Between Xiangyang Automobile and China Yangtze
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiangyang Automobile Bearing and China Yangtze Power, you can compare the effects of market volatilities on Xiangyang Automobile and China Yangtze 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 China Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and China Yangtze.
Diversification Opportunities for Xiangyang Automobile and China Yangtze
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Xiangyang and China is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and China Yangtze Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Yangtze Power 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 China Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Yangtze Power has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and China Yangtze go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and China Yangtze
Assuming the 90 days trading horizon Xiangyang Automobile is expected to generate 2.14 times less return on investment than China Yangtze. In addition to that, Xiangyang Automobile is 3.35 times more volatile than China Yangtze Power. It trades about 0.01 of its total potential returns per unit of risk. China Yangtze Power is currently generating about 0.07 per unit of volatility. If you would invest 2,010 in China Yangtze Power on August 29, 2024 and sell it today you would earn a total of 729.00 from holding China Yangtze Power or generate 36.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. China Yangtze Power
Performance |
| Timeline |
| Xiangyang Automobile |
| China Yangtze Power |
Xiangyang Automobile and China Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and China Yangtze
The main advantage of trading using opposite Xiangyang Automobile and China Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, China Yangtze 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 China Yangtze will offset losses from the drop in China Yangtze's long position.| Xiangyang Automobile vs. Agricultural Bank of | Xiangyang Automobile vs. Industrial and Commercial | Xiangyang Automobile vs. Bank of China | Xiangyang Automobile vs. China Construction Bank |
| China Yangtze vs. Guizhou BroadcastingTV Info | China Yangtze vs. Hunan Investment Group | China Yangtze vs. Tieling Newcity Investment | China Yangtze vs. Fujian Longzhou Transportation |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |