Correlation Between Xiangyang Automobile and Hangzhou Huawang
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Hangzhou Huawang New, you can compare the effects of market volatilities on Xiangyang Automobile and Hangzhou Huawang 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 Hangzhou Huawang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Hangzhou Huawang.
Diversification Opportunities for Xiangyang Automobile and Hangzhou Huawang
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangyang and Hangzhou is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Hangzhou Huawang New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Huawang New 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 Hangzhou Huawang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Huawang New has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Hangzhou Huawang go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Hangzhou Huawang
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.64 times more return on investment than Hangzhou Huawang. However, Xiangyang Automobile is 1.64 times more volatile than Hangzhou Huawang New. It trades about -0.01 of its potential returns per unit of risk. Hangzhou Huawang New is currently generating about -0.14 per unit of risk. If you would invest 592.00 in Xiangyang Automobile Bearing on August 29, 2024 and sell it today you would lose (12.00) from holding Xiangyang Automobile Bearing or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Hangzhou Huawang New
Performance |
| Timeline |
| Xiangyang Automobile |
| Hangzhou Huawang New |
Xiangyang Automobile and Hangzhou Huawang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Hangzhou Huawang
The main advantage of trading using opposite Xiangyang Automobile and Hangzhou Huawang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Hangzhou Huawang 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 Hangzhou Huawang will offset losses from the drop in Hangzhou Huawang'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 |
| Hangzhou Huawang vs. Qinghaihuading Industrial Co | Hangzhou Huawang vs. Hengli Industrial Development | Hangzhou Huawang vs. Gem Year Industrial Co | Hangzhou Huawang vs. Guangdong Jingyi Metal |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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