Correlation Between Xiangyang Automobile and Zhongtong Guomai
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Xiangyang Automobile and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Zhongtong Guomai.
Diversification Opportunities for Xiangyang Automobile and Zhongtong Guomai
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyang and Zhongtong is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Zhongtong Guomai
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.06 times more return on investment than Zhongtong Guomai. However, Xiangyang Automobile is 1.06 times more volatile than Zhongtong Guomai Communication. It trades about 0.01 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.01 per unit of risk. If you would invest 645.00 in Xiangyang Automobile Bearing on August 29, 2024 and sell it today you would lose (65.00) from holding Xiangyang Automobile Bearing or give up 10.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Xiangyang Automobile |
| Zhongtong Guomai Com |
Xiangyang Automobile and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Zhongtong Guomai
The main advantage of trading using opposite Xiangyang Automobile and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's 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 |
| Zhongtong Guomai vs. Jilin Jlu Communication | Zhongtong Guomai vs. Miracll Chemicals Co | Zhongtong Guomai vs. Gome Telecom Equipment | Zhongtong Guomai vs. Soyea Technology Co |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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