Correlation Between Xiangyang Automobile and Shandong Sinoglory
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Shandong Sinoglory Health, you can compare the effects of market volatilities on Xiangyang Automobile and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Shandong Sinoglory.
Diversification Opportunities for Xiangyang Automobile and Shandong Sinoglory
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangyang and Shandong is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Shandong Sinoglory
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to under-perform the Shandong Sinoglory. In addition to that, Xiangyang Automobile is 2.21 times more volatile than Shandong Sinoglory Health. It trades about -0.09 of its total potential returns per unit of risk. Shandong Sinoglory Health is currently generating about 0.01 per unit of volatility. If you would invest 1,187 in Shandong Sinoglory Health on October 28, 2024 and sell it today you would earn a total of 1.00 from holding Shandong Sinoglory Health or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Shandong Sinoglory Health
Performance |
| Timeline |
| Xiangyang Automobile |
| Shandong Sinoglory Health |
Xiangyang Automobile and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Shandong Sinoglory
The main advantage of trading using opposite Xiangyang Automobile and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.| Xiangyang Automobile vs. Xiangtan Electrochemical Scientific | Xiangyang Automobile vs. Lier Chemical Co | Xiangyang Automobile vs. Keda Clean Energy | Xiangyang Automobile vs. Guizhou Chanhen Chemical |
| Shandong Sinoglory vs. Kweichow Moutai Co | Shandong Sinoglory vs. Contemporary Amperex Technology | Shandong Sinoglory vs. G bits Network Technology | Shandong Sinoglory vs. Beijing Roborock Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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