Correlation Between Xiangyang Automobile and Yantai North
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Yantai North Andre, you can compare the effects of market volatilities on Xiangyang Automobile and Yantai North 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 Yantai North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Yantai North.
Diversification Opportunities for Xiangyang Automobile and Yantai North
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyang and Yantai is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Yantai North Andre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yantai North Andre 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 Yantai North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yantai North Andre has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Yantai North go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Yantai North
Assuming the 90 days trading horizon Xiangyang Automobile is expected to generate 1.68 times less return on investment than Yantai North. But when comparing it to its historical volatility, Xiangyang Automobile Bearing is 1.07 times less risky than Yantai North. It trades about 0.04 of its potential returns per unit of risk. Yantai North Andre is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,984 in Yantai North Andre on August 28, 2024 and sell it today you would earn a total of 746.00 from holding Yantai North Andre or generate 37.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.49% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Yantai North Andre
Performance |
| Timeline |
| Xiangyang Automobile |
| Yantai North Andre |
Xiangyang Automobile and Yantai North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Yantai North
The main advantage of trading using opposite Xiangyang Automobile and Yantai North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Yantai North 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 Yantai North will offset losses from the drop in Yantai North'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 |
| Yantai North vs. Industrial and Commercial | Yantai North vs. Kweichow Moutai Co | Yantai North vs. Agricultural Bank of | Yantai North vs. China Mobile Limited |
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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