Correlation Between Xiangyang Automobile and Shanghai Bailian
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Shanghai Bailian Group, you can compare the effects of market volatilities on Xiangyang Automobile and Shanghai Bailian 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 Shanghai Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Shanghai Bailian.
Diversification Opportunities for Xiangyang Automobile and Shanghai Bailian
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiangyang and Shanghai is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Shanghai Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Shanghai Bailian go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Shanghai Bailian
Assuming the 90 days trading horizon Xiangyang Automobile is expected to generate 8.92 times less return on investment than Shanghai Bailian. In addition to that, Xiangyang Automobile is 1.2 times more volatile than Shanghai Bailian Group. It trades about 0.02 of its total potential returns per unit of risk. Shanghai Bailian Group is currently generating about 0.23 per unit of volatility. If you would invest 52.00 in Shanghai Bailian Group on August 30, 2024 and sell it today you would earn a total of 16.00 from holding Shanghai Bailian Group or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangyang Automobile Bearing vs. Shanghai Bailian Group
Performance |
| Timeline |
| Xiangyang Automobile |
| Shanghai Bailian |
Xiangyang Automobile and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangyang Automobile and Shanghai Bailian
The main advantage of trading using opposite Xiangyang Automobile and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Shanghai Bailian 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 Shanghai Bailian will offset losses from the drop in Shanghai Bailian's long position.| Xiangyang Automobile vs. Ming Yang Smart | Xiangyang Automobile vs. 159681 | Xiangyang Automobile vs. 159005 | Xiangyang Automobile vs. 516220 |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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