Correlation Between CIMC Vehicles and Xiangyang Automobile
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By analyzing existing cross correlation between CIMC Vehicles Co and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on CIMC Vehicles 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 CIMC Vehicles with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Xiangyang Automobile.
Diversification Opportunities for CIMC Vehicles and Xiangyang Automobile
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CIMC and Xiangyang is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile and CIMC Vehicles 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 CIMC Vehicles Co 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 CIMC Vehicles i.e., CIMC Vehicles and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Xiangyang Automobile
Assuming the 90 days trading horizon CIMC Vehicles is expected to generate 5.38 times less return on investment than Xiangyang Automobile. But when comparing it to its historical volatility, CIMC Vehicles Co is 1.31 times less risky than Xiangyang Automobile. It trades about 0.03 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about 0.13 of returns per unit of risk over similar time horizon. 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 |
CIMC Vehicles Co vs. Xiangyang Automobile Bearing
Performance |
Timeline |
CIMC Vehicles |
Xiangyang Automobile |
CIMC Vehicles and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CIMC Vehicles and Xiangyang Automobile
The main advantage of trading using opposite CIMC Vehicles and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles 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.CIMC Vehicles vs. Industrial and Commercial | CIMC Vehicles vs. Agricultural Bank of | CIMC Vehicles vs. China Construction Bank | CIMC Vehicles vs. Bank of China |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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