Correlation Between XAC Automation and Chainqui Construction
Can any of the company-specific risk be diversified away by investing in both XAC Automation and Chainqui Construction at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining XAC Automation and Chainqui Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XAC Automation and Chainqui Construction Development, you can compare the effects of market volatilities on XAC Automation and Chainqui Construction 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 XAC Automation with a short position of Chainqui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAC Automation and Chainqui Construction.
Diversification Opportunities for XAC Automation and Chainqui Construction
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between XAC and Chainqui is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding XAC Automation and Chainqui Construction Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chainqui Construction and XAC Automation 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 XAC Automation are associated (or correlated) with Chainqui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chainqui Construction has no effect on the direction of XAC Automation i.e., XAC Automation and Chainqui Construction go up and down completely randomly.
Pair Corralation between XAC Automation and Chainqui Construction
Assuming the 90 days trading horizon XAC Automation is expected to generate 1.36 times more return on investment than Chainqui Construction. However, XAC Automation is 1.36 times more volatile than Chainqui Construction Development. It trades about 0.05 of its potential returns per unit of risk. Chainqui Construction Development is currently generating about -0.18 per unit of risk. If you would invest 2,545 in XAC Automation on September 4, 2024 and sell it today you would earn a total of 60.00 from holding XAC Automation or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XAC Automation vs. Chainqui Construction Developm
Performance |
| Timeline |
| XAC Automation |
| Chainqui Construction |
XAC Automation and Chainqui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XAC Automation and Chainqui Construction
The main advantage of trading using opposite XAC Automation and Chainqui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAC Automation position performs unexpectedly, Chainqui Construction 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 Chainqui Construction will offset losses from the drop in Chainqui Construction's long position.| XAC Automation vs. Taiwan Steel Union | XAC Automation vs. China Steel Corp | XAC Automation vs. Yieh United Steel | XAC Automation vs. Trade Van Information Services |
| Chainqui Construction vs. Universal Microelectronics Co | Chainqui Construction vs. AVerMedia Technologies | Chainqui Construction vs. Symtek Automation Asia | Chainqui Construction vs. WiseChip Semiconductor |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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