Correlation Between Xiangyang Automobile and Cenntro Electric

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Can any of the company-specific risk be diversified away by investing in both Xiangyang Automobile and Cenntro Electric at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Xiangyang Automobile and Cenntro Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xiangyang Automobile Bearing and Cenntro Electric Group, you can compare the effects of market volatilities on Xiangyang Automobile and Cenntro Electric 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 Cenntro Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangyang Automobile and Cenntro Electric.

Diversification Opportunities for Xiangyang Automobile and Cenntro Electric

0.62
  Correlation Coefficient

Poor diversification

The 3 months correlation between Xiangyang and Cenntro is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Xiangyang Automobile Bearing and Cenntro Electric Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenntro Electric 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 Cenntro Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenntro Electric has no effect on the direction of Xiangyang Automobile i.e., Xiangyang Automobile and Cenntro Electric go up and down completely randomly.

Pair Corralation between Xiangyang Automobile and Cenntro Electric

Assuming the 90 days trading horizon Xiangyang Automobile Bearing is expected to generate 0.32 times more return on investment than Cenntro Electric. However, Xiangyang Automobile Bearing is 3.09 times less risky than Cenntro Electric. It trades about -0.02 of its potential returns per unit of risk. Cenntro Electric Group is currently generating about -0.12 per unit of risk. If you would invest  1,532  in Xiangyang Automobile Bearing on September 8, 2025 and sell it today you would lose (73.00) from holding Xiangyang Automobile Bearing or give up 4.77% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy92.31%
ValuesDaily Returns

Xiangyang Automobile Bearing  vs.  Cenntro Electric Group

 Performance 
       Timeline  
Xiangyang Automobile 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Xiangyang Automobile Bearing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Xiangyang Automobile is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Cenntro Electric 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Cenntro Electric Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Xiangyang Automobile and Cenntro Electric Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Xiangyang Automobile and Cenntro Electric

The main advantage of trading using opposite Xiangyang Automobile and Cenntro Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangyang Automobile position performs unexpectedly, Cenntro Electric 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 Cenntro Electric will offset losses from the drop in Cenntro Electric's long position.
The idea behind Xiangyang Automobile Bearing and Cenntro Electric Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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