Correlation Between Xiangyang Automobile and Liaoning Port
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Liaoning Port Co, you can compare the effects of market volatilities on Xiangyang Automobile and Liaoning Port 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 Liaoning Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Liaoning Port.
Diversification Opportunities for Xiangyang Automobile and Liaoning Port
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiangyang and Liaoning is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Liaoning Port Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Port 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 Liaoning Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Port has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Liaoning Port go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Liaoning Port
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to under-perform the Liaoning Port. In addition to that, Xiangyang Automobile is 1.47 times more volatile than Liaoning Port Co. It trades about 0.0 of its total potential returns per unit of risk. Liaoning Port Co is currently generating about 0.06 per unit of volatility. If you would invest 151.00 in Liaoning Port Co on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Liaoning Port Co or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Liaoning Port Co
Performance |
| Timeline |
| Xiangyang Automobile |
| Liaoning Port |
Xiangyang Automobile and Liaoning Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Liaoning Port
The main advantage of trading using opposite Xiangyang Automobile and Liaoning Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Liaoning Port 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 Liaoning Port will offset losses from the drop in Liaoning Port's long position.| Xiangyang Automobile vs. Loongson Technology Corp | Xiangyang Automobile vs. Chongqing Road Bridge | Xiangyang Automobile vs. Shenzhen Fortune Trend | Xiangyang Automobile vs. Wuhan Xianglong Power |
| Liaoning Port vs. Industrial and Commercial | Liaoning Port vs. Agricultural Bank of | Liaoning Port vs. China Construction Bank | Liaoning Port vs. Bank of China |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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