Correlation Between Xiangtan Electrochemical and Xiangyang Automobile
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By analyzing existing cross correlation between Xiangtan Electrochemical Scientific and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Xiangtan Electrochemical and Xiangyang 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 Xiangtan Electrochemical with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangtan Electrochemical and Xiangyang Automobile.
Diversification Opportunities for Xiangtan Electrochemical and Xiangyang Automobile
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiangtan and Xiangyang is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Xiangtan Electrochemical Scien and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and Xiangtan Electrochemical 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 Xiangtan Electrochemical Scientific are associated (or correlated) with Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Xiangtan Electrochemical i.e., Xiangtan Electrochemical and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Xiangtan Electrochemical and Xiangyang Automobile
Assuming the 90 days trading horizon Xiangtan Electrochemical Scientific is expected to generate 0.45 times more return on investment than Xiangyang Automobile. However, Xiangtan Electrochemical Scientific is 2.24 times less risky than Xiangyang Automobile. It trades about -0.04 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about -0.07 per unit of risk. If you would invest 1,040 in Xiangtan Electrochemical Scientific on October 29, 2024 and sell it today you would lose (17.00) from holding Xiangtan Electrochemical Scientific or give up 1.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangtan Electrochemical Scien vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Xiangtan Electrochemical |
| Xiangyang Automobile |
Xiangtan Electrochemical and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangtan Electrochemical and Xiangyang Automobile
The main advantage of trading using opposite Xiangtan Electrochemical and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangtan Electrochemical position performs unexpectedly, Xiangyang 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.| Xiangtan Electrochemical vs. Vats Liquor Chain | Xiangtan Electrochemical vs. Meinian Onehealth Healthcare | Xiangtan Electrochemical vs. Lotus Health Group | Xiangtan Electrochemical vs. Youngy Health Co |
| Xiangyang Automobile vs. Guangzhou Jinyi Media | Xiangyang Automobile vs. Duzhe Publishing Media | Xiangyang Automobile vs. Shanghai Xinhua Media | Xiangyang Automobile vs. Beijing YanDong MicroElectronic |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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