Correlation Between Shanghai Yaoji and Xiangyang Automobile
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Shanghai Yaoji 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 Shanghai Yaoji with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Xiangyang Automobile.
Diversification Opportunities for Shanghai Yaoji and Xiangyang Automobile
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Xiangyang is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and Shanghai Yaoji 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 Shanghai Yaoji Playing 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 Shanghai Yaoji i.e., Shanghai Yaoji and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Xiangyang Automobile
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.04 times more return on investment than Xiangyang Automobile. However, Shanghai Yaoji is 1.04 times more volatile than Xiangyang Automobile Bearing. It trades about 0.05 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about 0.02 per unit of risk. If you would invest 1,620 in Shanghai Yaoji Playing on November 19, 2024 and sell it today you would earn a total of 1,396 from holding Shanghai Yaoji Playing or generate 86.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Xiangyang Automobile |
Shanghai Yaoji and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Xiangyang Automobile
The main advantage of trading using opposite Shanghai Yaoji and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji 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.| Shanghai Yaoji vs. Citic Guoan Wine | Shanghai Yaoji vs. Jiangsu Hoperun Software | Shanghai Yaoji vs. Jointo Energy Investment | Shanghai Yaoji vs. GuoChuang Software Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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