Correlation Between Sinomach Automobile and SuZhou ChunXing
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By analyzing existing cross correlation between Sinomach Automobile Co and SuZhou ChunXing Precision, you can compare the effects of market volatilities on Sinomach Automobile and SuZhou ChunXing 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 Sinomach Automobile with a short position of SuZhou ChunXing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and SuZhou ChunXing.
Diversification Opportunities for Sinomach Automobile and SuZhou ChunXing
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and SuZhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and SuZhou ChunXing Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SuZhou ChunXing Precision and Sinomach 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 Sinomach Automobile Co are associated (or correlated) with SuZhou ChunXing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SuZhou ChunXing Precision has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and SuZhou ChunXing go up and down completely randomly.
Pair Corralation between Sinomach Automobile and SuZhou ChunXing
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 0.56 times more return on investment than SuZhou ChunXing. However, Sinomach Automobile Co is 1.78 times less risky than SuZhou ChunXing. It trades about 0.0 of its potential returns per unit of risk. SuZhou ChunXing Precision is currently generating about 0.0 per unit of risk. If you would invest 662.00 in Sinomach Automobile Co on September 25, 2024 and sell it today you would lose (5.00) from holding Sinomach Automobile Co or give up 0.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Sinomach Automobile Co vs. SuZhou ChunXing Precision
Performance |
Timeline |
Sinomach Automobile |
SuZhou ChunXing Precision |
Sinomach Automobile and SuZhou ChunXing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinomach Automobile and SuZhou ChunXing
The main advantage of trading using opposite Sinomach Automobile and SuZhou ChunXing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, SuZhou ChunXing 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 SuZhou ChunXing will offset losses from the drop in SuZhou ChunXing's long position.Sinomach Automobile vs. Beijing HuaYuanYiTong Thermal | Sinomach Automobile vs. Duzhe Publishing Media | Sinomach Automobile vs. Western Metal Materials | Sinomach Automobile vs. Wasu Media Holding |
SuZhou ChunXing vs. Wanhua Chemical Group | SuZhou ChunXing vs. Baoshan Iron Steel | SuZhou ChunXing vs. Shandong Gold Mining | SuZhou ChunXing vs. Rongsheng Petrochemical 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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