Correlation Between Xiangyang Automobile and Dawning Information
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Dawning Information Industry, you can compare the effects of market volatilities on Xiangyang Automobile and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Dawning Information.
Diversification Opportunities for Xiangyang Automobile and Dawning Information
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyang and Dawning is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Dawning Information go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Dawning Information
Assuming the 90 days trading horizon Xiangyang Automobile is expected to generate 10.34 times less return on investment than Dawning Information. But when comparing it to its historical volatility, Xiangyang Automobile Bearing is 1.42 times less risky than Dawning Information. It trades about 0.04 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 5,965 in Dawning Information Industry on August 30, 2024 and sell it today you would earn a total of 1,883 from holding Dawning Information Industry or generate 31.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Dawning Information Industry
Performance |
| Timeline |
| Xiangyang Automobile |
| Dawning Information |
Xiangyang Automobile and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Dawning Information
The main advantage of trading using opposite Xiangyang Automobile and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Xiangyang Automobile vs. Ming Yang Smart | Xiangyang Automobile vs. 159681 | Xiangyang Automobile vs. 159005 | Xiangyang Automobile vs. 516220 |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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