Correlation Between XAC Automation and Chicony Power
Can any of the company-specific risk be diversified away by investing in both XAC Automation and Chicony Power 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 Chicony Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XAC Automation and Chicony Power Technology, you can compare the effects of market volatilities on XAC Automation and Chicony Power 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 Chicony Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAC Automation and Chicony Power.
Diversification Opportunities for XAC Automation and Chicony Power
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between XAC and Chicony is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding XAC Automation and Chicony Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicony Power Technology 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 Chicony Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicony Power Technology has no effect on the direction of XAC Automation i.e., XAC Automation and Chicony Power go up and down completely randomly.
Pair Corralation between XAC Automation and Chicony Power
Assuming the 90 days trading horizon XAC Automation is expected to generate 1.22 times more return on investment than Chicony Power. However, XAC Automation is 1.22 times more volatile than Chicony Power Technology. It trades about 0.0 of its potential returns per unit of risk. Chicony Power Technology is currently generating about -0.06 per unit of risk. If you would invest 2,725 in XAC Automation on September 3, 2024 and sell it today you would lose (135.00) from holding XAC Automation or give up 4.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XAC Automation vs. Chicony Power Technology
Performance |
| Timeline |
| XAC Automation |
| Chicony Power Technology |
XAC Automation and Chicony Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XAC Automation and Chicony Power
The main advantage of trading using opposite XAC Automation and Chicony Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAC Automation position performs unexpectedly, Chicony Power 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 Chicony Power will offset losses from the drop in Chicony Power'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 |
| Chicony Power vs. WiseChip Semiconductor | Chicony Power vs. Novatek Microelectronics Corp | Chicony Power vs. Leader Electronics | Chicony Power vs. Information Technology Total |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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