Correlation Between CARSALES and Yixin Group
Can any of the company-specific risk be diversified away by investing in both CARSALES and Yixin Group 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 CARSALES and Yixin Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CARSALESCOM and Yixin Group Limited, you can compare the effects of market volatilities on CARSALES and Yixin Group 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 CARSALES with a short position of Yixin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of CARSALES and Yixin Group.
Diversification Opportunities for CARSALES and Yixin Group
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between CARSALES and Yixin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding CARSALESCOM and Yixin Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yixin Group Limited and CARSALES 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 CARSALESCOM are associated (or correlated) with Yixin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yixin Group Limited has no effect on the direction of CARSALES i.e., CARSALES and Yixin Group go up and down completely randomly.
Pair Corralation between CARSALES and Yixin Group
Assuming the 90 days trading horizon CARSALESCOM is expected to generate 0.39 times more return on investment than Yixin Group. However, CARSALESCOM is 2.57 times less risky than Yixin Group. It trades about 0.47 of its potential returns per unit of risk. Yixin Group Limited is currently generating about 0.02 per unit of risk. If you would invest 2,240 in CARSALESCOM on September 2, 2024 and sell it today you would earn a total of 320.00 from holding CARSALESCOM or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CARSALESCOM vs. Yixin Group Limited
Performance |
| Timeline |
| CARSALESCOM |
| Yixin Group Limited |
CARSALES and Yixin Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CARSALES and Yixin Group
The main advantage of trading using opposite CARSALES and Yixin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CARSALES position performs unexpectedly, Yixin Group 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 Yixin Group will offset losses from the drop in Yixin Group's long position.| CARSALES vs. ASURE SOFTWARE | CARSALES vs. Austevoll Seafood ASA | CARSALES vs. INDOFOOD AGRI RES | CARSALES vs. Magic Software Enterprises |
| Yixin Group vs. ALTAIR RES INC | Yixin Group vs. CARSALESCOM | Yixin Group vs. Gruppo Mutuionline SpA | Yixin Group vs. Pentair plc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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