Correlation Between Xiangyang Automobile and Industrial Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiangyang Automobile Bearing and Industrial Securities Co, you can compare the effects of market volatilities on Xiangyang Automobile and Industrial Securities 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 Industrial Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Industrial Securities.
Diversification Opportunities for Xiangyang Automobile and Industrial Securities
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiangyang and Industrial is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Industrial Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Securities 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 Industrial Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Securities has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Industrial Securities go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Industrial Securities
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.92 times more return on investment than Industrial Securities. However, Xiangyang Automobile is 1.92 times more volatile than Industrial Securities Co. It trades about 0.01 of its potential returns per unit of risk. Industrial Securities Co is currently generating about 0.02 per unit of risk. If you would invest 616.00 in Xiangyang Automobile Bearing on September 3, 2024 and sell it today you would lose (17.00) from holding Xiangyang Automobile Bearing or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Industrial Securities Co
Performance |
| Timeline |
| Xiangyang Automobile |
| Industrial Securities |
Xiangyang Automobile and Industrial Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Industrial Securities
The main advantage of trading using opposite Xiangyang Automobile and Industrial Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Industrial Securities 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 Industrial Securities will offset losses from the drop in Industrial Securities' long position.The idea behind Xiangyang Automobile Bearing and Industrial Securities Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |