Correlation Between Xiangyang Automobile and CIMC Vehicles
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By analyzing existing cross correlation between Xiangyang Automobile Bearing and CIMC Vehicles Co, you can compare the effects of market volatilities on Xiangyang Automobile and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and CIMC Vehicles.
Diversification Opportunities for Xiangyang Automobile and CIMC Vehicles
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Xiangyang and CIMC is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Xiangyang Automobile and CIMC Vehicles
Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 1.31 times more return on investment than CIMC Vehicles. However, Xiangyang Automobile is 1.31 times more volatile than CIMC Vehicles Co. It trades about 0.13 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about 0.03 per unit of risk. If you would invest 512.00 in Xiangyang Automobile Bearing on September 26, 2024 and sell it today you would earn a total of 160.00 from holding Xiangyang Automobile Bearing or generate 31.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xiangyang Automobile Bearing vs. CIMC Vehicles Co
Performance |
Timeline |
Xiangyang Automobile |
CIMC Vehicles |
Xiangyang Automobile and CIMC Vehicles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiangyang Automobile and CIMC Vehicles
The main advantage of trading using opposite Xiangyang Automobile and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' 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 |
CIMC Vehicles vs. Industrial and Commercial | CIMC Vehicles vs. Agricultural Bank of | CIMC Vehicles vs. China Construction Bank | CIMC Vehicles vs. Bank of China |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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