Correlation Between Xiangyang Automobile and Zhengzhou Coal
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Zhengzhou Coal Mining, you can compare the effects of market volatilities on Xiangyang Automobile and Zhengzhou Coal 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 Zhengzhou Coal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Zhengzhou Coal.
Diversification Opportunities for Xiangyang Automobile and Zhengzhou Coal
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangyang and Zhengzhou is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Zhengzhou Coal Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Coal Mining 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 Zhengzhou Coal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Coal Mining has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Zhengzhou Coal go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Zhengzhou Coal
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.72 times more return on investment than Zhengzhou Coal. However, Xiangyang Automobile is 1.72 times more volatile than Zhengzhou Coal Mining. It trades about 0.02 of its potential returns per unit of risk. Zhengzhou Coal Mining is currently generating about 0.03 per unit of risk. If you would invest 689.00 in Xiangyang Automobile Bearing on September 15, 2024 and sell it today you would earn a total of 32.00 from holding Xiangyang Automobile Bearing or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Zhengzhou Coal Mining
Performance |
| Timeline |
| Xiangyang Automobile |
| Zhengzhou Coal Mining |
Xiangyang Automobile and Zhengzhou Coal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Zhengzhou Coal
The main advantage of trading using opposite Xiangyang Automobile and Zhengzhou Coal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Zhengzhou Coal 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 Zhengzhou Coal will offset losses from the drop in Zhengzhou Coal's long position.| Xiangyang Automobile vs. BeiGene | Xiangyang Automobile vs. Kweichow Moutai Co | Xiangyang Automobile vs. Beijing Roborock Technology | Xiangyang Automobile vs. G bits Network Technology |
| Zhengzhou Coal vs. Sanbo Hospital Management | Zhengzhou Coal vs. China National Software | Zhengzhou Coal vs. Beijing Yanjing Brewery | Zhengzhou Coal vs. Shanghai Rongtai Health |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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