Correlation Between Shanghai Yaoji and Xiangyang Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Yaoji Playing and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Shanghai Yaoji 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 Shanghai Yaoji with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Xiangyang Automobile.
Diversification Opportunities for Shanghai Yaoji and Xiangyang Automobile
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Xiangyang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and Shanghai Yaoji 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 Shanghai Yaoji Playing 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 Shanghai Yaoji i.e., Shanghai Yaoji and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Xiangyang Automobile
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to under-perform the Xiangyang Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Yaoji Playing is 1.06 times less risky than Xiangyang Automobile. The stock trades about -0.06 of its potential returns per unit of risk. The Xiangyang Automobile Bearing is currently generating about 0.15 of returns per unit of risk over similar time horizon. 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 | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Yaoji Playing vs. Xiangyang Automobile Bearing
Performance |
Timeline |
Shanghai Yaoji Playing |
Xiangyang Automobile |
Shanghai Yaoji and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Yaoji and Xiangyang Automobile
The main advantage of trading using opposite Shanghai Yaoji and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji 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.Shanghai Yaoji vs. Guangdong Jingyi Metal | Shanghai Yaoji vs. Chengtun Mining Group | Shanghai Yaoji vs. Pengxin International Mining | Shanghai Yaoji vs. Gem Year Industrial Co |
Xiangyang Automobile vs. China Life Insurance | Xiangyang Automobile vs. Cinda Securities Co | Xiangyang Automobile vs. Piotech Inc A | Xiangyang Automobile vs. Dongxing Sec Co |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |