Correlation Between China Sports and Xiangyang Automobile
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By analyzing existing cross correlation between China Sports Industry and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on China Sports 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 China Sports with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Xiangyang Automobile.
Diversification Opportunities for China Sports and Xiangyang Automobile
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Xiangyang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and China Sports 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 China Sports Industry 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 China Sports i.e., China Sports and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between China Sports and Xiangyang Automobile
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.52 times more return on investment than Xiangyang Automobile. However, China Sports Industry is 1.93 times less risky than Xiangyang Automobile. It trades about -0.01 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about -0.01 per unit of risk. If you would invest 822.00 in China Sports Industry on August 29, 2024 and sell it today you would lose (8.00) from holding China Sports Industry or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| China Sports Industry |
| Xiangyang Automobile |
China Sports and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Xiangyang Automobile
The main advantage of trading using opposite China Sports and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports 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.| China Sports vs. Industrial and Commercial | China Sports vs. China Construction Bank | China Sports vs. Bank of China | China Sports vs. Agricultural Bank of |
| Xiangyang Automobile vs. Loongson Technology Corp | Xiangyang Automobile vs. Chongqing Road Bridge | Xiangyang Automobile vs. Shenzhen Fortune Trend | Xiangyang Automobile vs. Wuhan Xianglong Power |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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