Correlation Between Beijing Venustech and Xiangyang Automobile
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By analyzing existing cross correlation between Beijing Venustech and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Beijing Venustech 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 Beijing Venustech with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Venustech and Xiangyang Automobile.
Diversification Opportunities for Beijing Venustech and Xiangyang Automobile
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Xiangyang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Venustech and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and Beijing Venustech 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 Beijing Venustech 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 Beijing Venustech i.e., Beijing Venustech and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Beijing Venustech and Xiangyang Automobile
Assuming the 90 days trading horizon Beijing Venustech is expected to under-perform the Xiangyang Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Venustech is 1.34 times less risky than Xiangyang Automobile. The stock trades about -0.04 of its potential returns per unit of risk. The Xiangyang Automobile Bearing is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 868.00 in Xiangyang Automobile Bearing on September 12, 2024 and sell it today you would lose (89.00) from holding Xiangyang Automobile Bearing or give up 10.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Venustech vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Beijing Venustech |
| Xiangyang Automobile |
Beijing Venustech and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Venustech and Xiangyang Automobile
The main advantage of trading using opposite Beijing Venustech and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Venustech 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.| Beijing Venustech vs. Xiangyang Automobile Bearing | Beijing Venustech vs. ButOne Information Corp | Beijing Venustech vs. Haima Automobile Group | Beijing Venustech vs. Ningbo Fangzheng Automobile |
| Xiangyang Automobile vs. Lutian Machinery Co | Xiangyang Automobile vs. PetroChina Co Ltd | Xiangyang Automobile vs. Bank of China | Xiangyang Automobile vs. Gansu Jiu Steel |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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