Correlation Between Xiangyang Automobile and Dongguan Aohai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiangyang Automobile Bearing and Dongguan Aohai Technology, you can compare the effects of market volatilities on Xiangyang Automobile and Dongguan Aohai 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 Dongguan Aohai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Dongguan Aohai.
Diversification Opportunities for Xiangyang Automobile and Dongguan Aohai
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangyang and Dongguan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Dongguan Aohai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Aohai Technology 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 Dongguan Aohai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Aohai Technology has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Dongguan Aohai go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and Dongguan Aohai
Assuming the 90 days trading horizon Xiangyang Automobile is expected to generate 1.42 times less return on investment than Dongguan Aohai. In addition to that, Xiangyang Automobile is 1.04 times more volatile than Dongguan Aohai Technology. It trades about 0.15 of its total potential returns per unit of risk. Dongguan Aohai Technology is currently generating about 0.23 per unit of volatility. If you would invest 3,299 in Dongguan Aohai Technology on September 26, 2024 and sell it today you would earn a total of 708.00 from holding Dongguan Aohai Technology or generate 21.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Xiangyang Automobile Bearing vs. Dongguan Aohai Technology
Performance |
Timeline |
Xiangyang Automobile |
Dongguan Aohai Technology |
Xiangyang Automobile and Dongguan Aohai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiangyang Automobile and Dongguan Aohai
The main advantage of trading using opposite Xiangyang Automobile and Dongguan Aohai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Dongguan Aohai 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 Dongguan Aohai will offset losses from the drop in Dongguan Aohai'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 |
Dongguan Aohai vs. Kweichow Moutai Co | Dongguan Aohai vs. Contemporary Amperex Technology | Dongguan Aohai vs. G bits Network Technology | Dongguan Aohai vs. BYD Co Ltd |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |