Correlation Between HeNan Splendor and Xiangyang Automobile
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By analyzing existing cross correlation between HeNan Splendor Science and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on HeNan Splendor 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 HeNan Splendor with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Xiangyang Automobile.
Diversification Opportunities for HeNan Splendor and Xiangyang Automobile
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HeNan and Xiangyang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and HeNan Splendor 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 HeNan Splendor Science 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 HeNan Splendor i.e., HeNan Splendor and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between HeNan Splendor and Xiangyang Automobile
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 0.91 times more return on investment than Xiangyang Automobile. However, HeNan Splendor Science is 1.1 times less risky than Xiangyang Automobile. It trades about 0.13 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about -0.01 per unit of risk. If you would invest 924.00 in HeNan Splendor Science on August 29, 2024 and sell it today you would earn a total of 85.00 from holding HeNan Splendor Science or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| HeNan Splendor Science |
| Xiangyang Automobile |
HeNan Splendor and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Xiangyang Automobile
The main advantage of trading using opposite HeNan Splendor and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor 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.| HeNan Splendor vs. Xiangyang Automobile Bearing | HeNan Splendor vs. PKU HealthCare Corp | HeNan Splendor vs. Guangzhou Haige Communications | HeNan Splendor vs. De Rucci Healthy |
| Xiangyang Automobile vs. Loongson Technology Corp | Xiangyang Automobile vs. Chongqing Road Bridge | Xiangyang Automobile vs. Shenzhen Fortune Trend | Xiangyang Automobile vs. Wuhan Xianglong Power |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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