Correlation Between CIMC Vehicles and Western Metal
Specify exactly 2 symbols:
By analyzing existing cross correlation between CIMC Vehicles Co and Western Metal Materials, you can compare the effects of market volatilities on CIMC Vehicles and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Western Metal.
Diversification Opportunities for CIMC Vehicles and Western Metal
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIMC and Western is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Western Metal go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Western Metal
Assuming the 90 days trading horizon CIMC Vehicles is expected to generate 4.21 times less return on investment than Western Metal. In addition to that, CIMC Vehicles is 1.02 times more volatile than Western Metal Materials. It trades about 0.05 of its total potential returns per unit of risk. Western Metal Materials is currently generating about 0.2 per unit of volatility. If you would invest 1,260 in Western Metal Materials on September 23, 2024 and sell it today you would earn a total of 551.00 from holding Western Metal Materials or generate 43.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
CIMC Vehicles Co vs. Western Metal Materials
Performance |
Timeline |
CIMC Vehicles |
Western Metal Materials |
CIMC Vehicles and Western Metal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CIMC Vehicles and Western Metal
The main advantage of trading using opposite CIMC Vehicles and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.CIMC Vehicles vs. Xinjiang Communications Construction | CIMC Vehicles vs. Kangping Technology Co | CIMC Vehicles vs. Changchun UP Optotech | CIMC Vehicles vs. Wintao Communications Co |
Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal vs. Shandong Gold Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |