Correlation Between Xingguang Agricultural and Hubeiyichang Transportation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xingguang Agricultural Mach and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Xingguang Agricultural and Hubeiyichang Transportation 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 Xingguang Agricultural with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xingguang Agricultural and Hubeiyichang Transportation.
Diversification Opportunities for Xingguang Agricultural and Hubeiyichang Transportation
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xingguang and Hubeiyichang is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Xingguang Agricultural Mach and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and Xingguang Agricultural 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 Xingguang Agricultural Mach are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Xingguang Agricultural i.e., Xingguang Agricultural and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Xingguang Agricultural and Hubeiyichang Transportation
Assuming the 90 days trading horizon Xingguang Agricultural Mach is expected to generate 2.0 times more return on investment than Hubeiyichang Transportation. However, Xingguang Agricultural is 2.0 times more volatile than Hubeiyichang Transportation Group. It trades about 0.01 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.0 per unit of risk. If you would invest 872.00 in Xingguang Agricultural Mach on October 11, 2024 and sell it today you would lose (126.00) from holding Xingguang Agricultural Mach or give up 14.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xingguang Agricultural Mach vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Xingguang Agricultural |
| Hubeiyichang Transportation |
Xingguang Agricultural and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xingguang Agricultural and Hubeiyichang Transportation
The main advantage of trading using opposite Xingguang Agricultural and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xingguang Agricultural position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.The idea behind Xingguang Agricultural Mach and Hubeiyichang Transportation Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |