Correlation Between Xiangyang Automobile and Hangzhou EZVIZ
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Hangzhou EZVIZ Network, you can compare the effects of market volatilities on Xiangyang Automobile and Hangzhou EZVIZ 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 EZVIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Hangzhou EZVIZ.
Diversification Opportunities for Xiangyang Automobile and Hangzhou EZVIZ
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xiangyang and Hangzhou is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Hangzhou EZVIZ Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou EZVIZ Network 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 EZVIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou EZVIZ Network has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Hangzhou EZVIZ go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Hangzhou EZVIZ
Assuming the 90 days trading horizon Xiangyang Automobile is expected to generate 1.4 times less return on investment than Hangzhou EZVIZ. In addition to that, Xiangyang Automobile is 1.14 times more volatile than Hangzhou EZVIZ Network. It trades about 0.03 of its total potential returns per unit of risk. Hangzhou EZVIZ Network is currently generating about 0.04 per unit of volatility. If you would invest 2,025 in Hangzhou EZVIZ Network on September 28, 2024 and sell it today you would earn a total of 1,005 from holding Hangzhou EZVIZ Network or generate 49.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Hangzhou EZVIZ Network
Performance |
| Timeline |
| Xiangyang Automobile |
| Hangzhou EZVIZ Network |
Xiangyang Automobile and Hangzhou EZVIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Hangzhou EZVIZ
The main advantage of trading using opposite Xiangyang Automobile and Hangzhou EZVIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Hangzhou EZVIZ 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 EZVIZ will offset losses from the drop in Hangzhou EZVIZ's long position.| Xiangyang Automobile vs. China Life Insurance | Xiangyang Automobile vs. Cinda Securities Co | Xiangyang Automobile vs. Piotech Inc A | Xiangyang Automobile vs. Dongxing Sec Co |
| Hangzhou EZVIZ vs. Gansu Yasheng Industrial | Hangzhou EZVIZ vs. Guangzhou Haige Communications | Hangzhou EZVIZ vs. Guangdong Shenglu Telecommunication | Hangzhou EZVIZ vs. Bank of Communications |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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