Correlation Between XAC Automation and Shuang Bang
Can any of the company-specific risk be diversified away by investing in both XAC Automation and Shuang Bang 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 Shuang Bang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XAC Automation and Shuang Bang Industrial, you can compare the effects of market volatilities on XAC Automation and Shuang Bang 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 Shuang Bang. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAC Automation and Shuang Bang.
Diversification Opportunities for XAC Automation and Shuang Bang
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between XAC and Shuang is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding XAC Automation and Shuang Bang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuang Bang Industrial 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 Shuang Bang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuang Bang Industrial has no effect on the direction of XAC Automation i.e., XAC Automation and Shuang Bang go up and down completely randomly.
Pair Corralation between XAC Automation and Shuang Bang
Assuming the 90 days trading horizon XAC Automation is expected to generate 1.41 times more return on investment than Shuang Bang. However, XAC Automation is 1.41 times more volatile than Shuang Bang Industrial. It trades about 0.03 of its potential returns per unit of risk. Shuang Bang Industrial is currently generating about 0.01 per unit of risk. If you would invest 2,270 in XAC Automation on September 14, 2024 and sell it today you would earn a total of 230.00 from holding XAC Automation or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XAC Automation vs. Shuang Bang Industrial
Performance |
| Timeline |
| XAC Automation |
| Shuang Bang Industrial |
XAC Automation and Shuang Bang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XAC Automation and Shuang Bang
The main advantage of trading using opposite XAC Automation and Shuang Bang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAC Automation position performs unexpectedly, Shuang Bang 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 Shuang Bang will offset losses from the drop in Shuang Bang's long position.| XAC Automation vs. Shuang Bang Industrial | XAC Automation vs. Lian Hwa Foods | XAC Automation vs. Powertech Industrial Co | XAC Automation vs. International CSRC Investment |
| Shuang Bang vs. Delta Electronics | Shuang Bang vs. Ruentex Development Co | Shuang Bang vs. WiseChip Semiconductor | Shuang Bang vs. Novatek Microelectronics Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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