Correlation Between XinJiang GuoTong and Xiangyang Automobile
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on XinJiang GuoTong 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 XinJiang GuoTong with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Xiangyang Automobile.
Diversification Opportunities for XinJiang GuoTong and Xiangyang Automobile
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XinJiang and Xiangyang is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and XinJiang GuoTong 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 XinJiang GuoTong Pipeline 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 XinJiang GuoTong i.e., XinJiang GuoTong and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Xiangyang Automobile
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to under-perform the Xiangyang Automobile. But the stock apears to be less risky and, when comparing its historical volatility, XinJiang GuoTong Pipeline is 1.09 times less risky than Xiangyang Automobile. The stock trades about -0.26 of its potential returns per unit of risk. The Xiangyang Automobile Bearing is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 709.00 in Xiangyang Automobile Bearing on October 16, 2024 and sell it today you would lose (124.00) from holding Xiangyang Automobile Bearing or give up 17.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Xiangyang Automobile |
XinJiang GuoTong and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Xiangyang Automobile
The main advantage of trading using opposite XinJiang GuoTong and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong 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.| XinJiang GuoTong vs. Guangdong Transtek Medical | XinJiang GuoTong vs. Dongguan Tarry Electronics | XinJiang GuoTong vs. CareRay Digital Medical | XinJiang GuoTong vs. Allmed Medical Products |
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 CEOs Directory module to screen CEOs from public companies around the world.
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