Correlation Between Xiangyang Automobile and Northking Information
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and Northking Information Technology, you can compare the effects of market volatilities on Xiangyang Automobile and Northking Information 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 Xiangyang Automobile with a short position of Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Northking Information.
Diversification Opportunities for Xiangyang Automobile and Northking Information
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiangyang and Northking is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information and Xiangyang Automobile 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 Xiangyang Automobile Bearing are associated (or correlated) with Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Northking Information go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Northking Information
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.38 times more return on investment than Northking Information. However, Xiangyang Automobile is 1.38 times more volatile than Northking Information Technology. It trades about 0.15 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.05 per unit of risk. If you would invest 590.00 in Xiangyang Automobile Bearing on September 26, 2024 and sell it today you would earn a total of 82.00 from holding Xiangyang Automobile Bearing or generate 13.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xiangyang Automobile Bearing vs. Northking Information Technolo
Performance |
Timeline |
Xiangyang Automobile |
Northking Information |
Xiangyang Automobile and Northking Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiangyang Automobile and Northking Information
The main advantage of trading using opposite Xiangyang Automobile and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.Xiangyang Automobile vs. China Life Insurance | Xiangyang Automobile vs. Cinda Securities Co | Xiangyang Automobile vs. Piotech Inc A | Xiangyang Automobile vs. Dongxing Sec Co |
Northking Information vs. Kweichow Moutai Co | Northking Information vs. Shenzhen Mindray Bio Medical | Northking Information vs. Jiangsu Pacific Quartz | Northking Information vs. G bits Network Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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