Correlation Between Piotech and Xiangyang Automobile
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By analyzing existing cross correlation between Piotech Inc A and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Piotech 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 Piotech with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Xiangyang Automobile.
Diversification Opportunities for Piotech and Xiangyang Automobile
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Piotech and Xiangyang is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and Piotech 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 Piotech Inc A 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 Piotech i.e., Piotech and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Piotech and Xiangyang Automobile
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the Xiangyang Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Piotech Inc A is 2.67 times less risky than Xiangyang Automobile. The stock trades about -0.45 of its potential returns per unit of risk. The Xiangyang Automobile Bearing is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 577.00 in Xiangyang Automobile Bearing on September 29, 2024 and sell it today you would earn a total of 131.00 from holding Xiangyang Automobile Bearing or generate 22.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Piotech Inc A |
| Xiangyang Automobile |
Piotech and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Xiangyang Automobile
The main advantage of trading using opposite Piotech and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech 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.| Piotech vs. Ming Yang Smart | Piotech vs. 159681 | Piotech vs. 159005 | Piotech vs. Loctek Ergonomic Technology |
| Xiangyang Automobile vs. Chahua Modern Housewares | Xiangyang Automobile vs. ChengDu Hi Tech Development | Xiangyang Automobile vs. Aerospace Hi Tech Holding | Xiangyang Automobile vs. Kuang Chi Technologies |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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