Correlation Between Chahua Modern and Xiangyang Automobile
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By analyzing existing cross correlation between Chahua Modern Housewares and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Chahua Modern 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 Chahua Modern with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Xiangyang Automobile.
Diversification Opportunities for Chahua Modern and Xiangyang Automobile
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chahua and Xiangyang is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and Chahua Modern 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 Chahua Modern Housewares 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 Chahua Modern i.e., Chahua Modern and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Chahua Modern and Xiangyang Automobile
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.04 times more return on investment than Xiangyang Automobile. However, Chahua Modern is 1.04 times more volatile than Xiangyang Automobile Bearing. It trades about 0.08 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about 0.02 per unit of risk. If you would invest 938.00 in Chahua Modern Housewares on September 30, 2024 and sell it today you would earn a total of 1,301 from holding Chahua Modern Housewares or generate 138.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Chahua Modern Housewares |
| Xiangyang Automobile |
Chahua Modern and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Xiangyang Automobile
The main advantage of trading using opposite Chahua Modern and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern 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.| Chahua Modern vs. Kontour Medical Technology | Chahua Modern vs. Allmed Medical Products | Chahua Modern vs. Blue Sail Medical | Chahua Modern vs. Hubei Geoway Investment |
| Xiangyang Automobile vs. China Life Insurance | Xiangyang Automobile vs. Cinda Securities Co | Xiangyang Automobile vs. Piotech Inc A | Xiangyang Automobile vs. Dongxing Sec Co |
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 Directory module to find actively traded commodities issued by global exchanges.
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