Correlation Between XAC Automation and Rich Development
Can any of the company-specific risk be diversified away by investing in both XAC Automation and Rich Development 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 Rich Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XAC Automation and Rich Development Co, you can compare the effects of market volatilities on XAC Automation and Rich Development 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 Rich Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAC Automation and Rich Development.
Diversification Opportunities for XAC Automation and Rich Development
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between XAC and Rich is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding XAC Automation and Rich Development Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rich Development 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 Rich Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rich Development has no effect on the direction of XAC Automation i.e., XAC Automation and Rich Development go up and down completely randomly.
Pair Corralation between XAC Automation and Rich Development
Assuming the 90 days trading horizon XAC Automation is expected to generate 1.1 times more return on investment than Rich Development. However, XAC Automation is 1.1 times more volatile than Rich Development Co. It trades about 0.04 of its potential returns per unit of risk. Rich Development Co is currently generating about 0.01 per unit of risk. If you would invest 2,245 in XAC Automation on September 4, 2024 and sell it today you would earn a total of 360.00 from holding XAC Automation or generate 16.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
XAC Automation vs. Rich Development Co
Performance |
| Timeline |
| XAC Automation |
| Rich Development |
XAC Automation and Rich Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XAC Automation and Rich Development
The main advantage of trading using opposite XAC Automation and Rich Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAC Automation position performs unexpectedly, Rich Development 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 Rich Development will offset losses from the drop in Rich Development's long position.| XAC Automation vs. Chinese Maritime Transport | XAC Automation vs. Lian Hwa Foods | XAC Automation vs. Emerging Display Technologies | XAC Automation vs. Mercuries Life Insurance |
| Rich Development vs. Kenmec Mechanical Engineering | Rich Development vs. XAC Automation | Rich Development vs. AVY Precision Technology | Rich Development vs. Hung Sheng Construction |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |