Correlation Between Xiandai Investment and Songz Automobile
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By analyzing existing cross correlation between Xiandai Investment Co and Songz Automobile Air, you can compare the effects of market volatilities on Xiandai Investment and Songz Automobile 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 Xiandai Investment with a short position of Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Songz Automobile.
Diversification Opportunities for Xiandai Investment and Songz Automobile
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiandai and Songz is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Songz Automobile go up and down completely randomly.
Pair Corralation between Xiandai Investment and Songz Automobile
Assuming the 90 days trading horizon Xiandai Investment Co is expected to under-perform the Songz Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Xiandai Investment Co is 1.48 times less risky than Songz Automobile. The stock trades about -0.13 of its potential returns per unit of risk. The Songz Automobile Air is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 669.00 in Songz Automobile Air on October 23, 2024 and sell it today you would earn a total of 24.00 from holding Songz Automobile Air or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Xiandai Investment Co vs. Songz Automobile Air
Performance |
| Timeline |
| Xiandai Investment |
| Songz Automobile Air |
Xiandai Investment and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Songz Automobile
The main advantage of trading using opposite Xiandai Investment and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's long position.| Xiandai Investment vs. Jiangnan Mould Plastic | Xiandai Investment vs. Suzhou Douson Drilling | Xiandai Investment vs. Shandong Longquan Pipeline | Xiandai Investment vs. Chengtun Mining Group |
| Songz Automobile vs. Hubei Geoway Investment | Songz Automobile vs. Zhangjiagang Freetrade Science | Songz Automobile vs. Beijing Mainstreets Investment | Songz Automobile vs. Xiandai Investment Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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