Correlation Between Xiangyang Automobile and Yonghui Superstores
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Yonghui Superstores Co, you can compare the effects of market volatilities on Xiangyang Automobile and Yonghui Superstores 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 Yonghui Superstores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Yonghui Superstores.
Diversification Opportunities for Xiangyang Automobile and Yonghui Superstores
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiangyang and Yonghui is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Yonghui Superstores Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonghui Superstores 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 Yonghui Superstores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonghui Superstores has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Yonghui Superstores go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Yonghui Superstores
Assuming the 90 days trading horizon Xiangyang Automobile is expected to generate 2.25 times less return on investment than Yonghui Superstores. But when comparing it to its historical volatility, Xiangyang Automobile Bearing is 1.31 times less risky than Yonghui Superstores. It trades about 0.14 of its potential returns per unit of risk. Yonghui Superstores Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 225.00 in Yonghui Superstores Co on August 29, 2024 and sell it today you would earn a total of 223.00 from holding Yonghui Superstores Co or generate 99.11% 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. Yonghui Superstores Co
Performance |
| Timeline |
| Xiangyang Automobile |
| Yonghui Superstores |
Xiangyang Automobile and Yonghui Superstores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Yonghui Superstores
The main advantage of trading using opposite Xiangyang Automobile and Yonghui Superstores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Yonghui Superstores 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 Yonghui Superstores will offset losses from the drop in Yonghui Superstores' 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 |
| Yonghui Superstores vs. PetroChina Co Ltd | Yonghui Superstores vs. China Mobile Limited | Yonghui Superstores vs. Ping An Insurance | Yonghui Superstores vs. China Petroleum Chemical |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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