Correlation Between Xiangyang Automobile and Qi An
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Qi An Xin, you can compare the effects of market volatilities on Xiangyang Automobile and Qi An 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 Qi An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Qi An.
Diversification Opportunities for Xiangyang Automobile and Qi An
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyang and 688561 is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Qi An Xin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qi An Xin 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 Qi An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qi An Xin has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Qi An go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Qi An
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.4 times more return on investment than Qi An. However, Xiangyang Automobile is 1.4 times more volatile than Qi An Xin. It trades about 0.08 of its potential returns per unit of risk. Qi An Xin is currently generating about -0.02 per unit of risk. If you would invest 552.00 in Xiangyang Automobile Bearing on August 25, 2024 and sell it today you would earn a total of 30.00 from holding Xiangyang Automobile Bearing or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Qi An Xin
Performance |
| Timeline |
| Xiangyang Automobile |
| Qi An Xin |
Xiangyang Automobile and Qi An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Qi An
The main advantage of trading using opposite Xiangyang Automobile and Qi An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Qi An 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 Qi An will offset losses from the drop in Qi An's long position.| Xiangyang Automobile vs. Ligao Foods CoLtd | Xiangyang Automobile vs. Eastroc Beverage Group | Xiangyang Automobile vs. Jiajia Food Group | Xiangyang Automobile vs. Beijing Sanyuan Foods |
| Qi An vs. Shenzhen Kexin Communication | Qi An vs. Changchun Faway Automobile | Qi An vs. CICT Mobile Communication | Qi An vs. Shanghai Yanpu 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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