Correlation Between Xinjiang Beixin and Xiangyang Automobile
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By analyzing existing cross correlation between Xinjiang Beixin RoadBridge and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Xinjiang Beixin 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 Beixin with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Beixin and Xiangyang Automobile.
Diversification Opportunities for Xinjiang Beixin and Xiangyang Automobile
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Xiangyang is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Beixin RoadBridge 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 Beixin 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 Beixin RoadBridge 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 Beixin i.e., Xinjiang Beixin and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Xinjiang Beixin and Xiangyang Automobile
Assuming the 90 days trading horizon Xinjiang Beixin RoadBridge is expected to generate 0.63 times more return on investment than Xiangyang Automobile. However, Xinjiang Beixin RoadBridge is 1.59 times less risky than Xiangyang Automobile. It trades about -0.06 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about -0.08 per unit of risk. If you would invest 353.00 in Xinjiang Beixin RoadBridge on November 4, 2024 and sell it today you would lose (10.00) from holding Xinjiang Beixin RoadBridge or give up 2.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Beixin RoadBridge vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Xinjiang Beixin Road |
| Xiangyang Automobile |
Xinjiang Beixin and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Beixin and Xiangyang Automobile
The main advantage of trading using opposite Xinjiang Beixin and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Beixin 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 Beixin vs. PetroChina Co Ltd | Xinjiang Beixin vs. China Mobile Limited | Xinjiang Beixin vs. CNOOC Limited | Xinjiang Beixin vs. Ping An Insurance |
| Xiangyang Automobile vs. Chengtun Mining Group | Xiangyang Automobile vs. Zhengzhou Coal Mining | Xiangyang Automobile vs. Shaanxi Broadcast TV | Xiangyang Automobile vs. Zijin Mining Group |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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