Correlation Between Xiangyang Automobile and Zhuzhou Kibing
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Xiangyang Automobile and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Zhuzhou Kibing.
Diversification Opportunities for Xiangyang Automobile and Zhuzhou Kibing
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyang and Zhuzhou is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Zhuzhou Kibing
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.49 times more return on investment than Zhuzhou Kibing. However, Xiangyang Automobile is 1.49 times more volatile than Zhuzhou Kibing Group. It trades about 0.01 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.03 per unit of risk. If you would invest 622.00 in Xiangyang Automobile Bearing on August 26, 2024 and sell it today you would lose (40.00) from holding Xiangyang Automobile Bearing or give up 6.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| Xiangyang Automobile |
| Zhuzhou Kibing Group |
Xiangyang Automobile and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Zhuzhou Kibing
The main advantage of trading using opposite Xiangyang Automobile and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| Xiangyang Automobile vs. Hainan Haiqi Transportation | Xiangyang Automobile vs. China Sports Industry | Xiangyang Automobile vs. Guangdong Brandmax Marketing | Xiangyang Automobile vs. Yindu Kitchen Equipment |
| Zhuzhou Kibing vs. Hubei Xingfa Chemicals | Zhuzhou Kibing vs. Semiconductor Manufacturing Electronics | Zhuzhou Kibing vs. Epoxy Base Electronic | Zhuzhou Kibing vs. Bomin Electronics 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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