Correlation Between Shandong Publishing and CIMC Vehicles
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By analyzing existing cross correlation between Shandong Publishing Media and CIMC Vehicles Co, you can compare the effects of market volatilities on Shandong Publishing 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 Shandong Publishing with a short position of CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and CIMC Vehicles.
Diversification Opportunities for Shandong Publishing and CIMC Vehicles
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and CIMC is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles and Shandong Publishing 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 Shandong Publishing Media 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 Shandong Publishing i.e., Shandong Publishing and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Shandong Publishing and CIMC Vehicles
Assuming the 90 days trading horizon Shandong Publishing Media is expected to under-perform the CIMC Vehicles. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Publishing Media is 1.26 times less risky than CIMC Vehicles. The stock trades about -0.04 of its potential returns per unit of risk. The CIMC Vehicles Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 832.00 in CIMC Vehicles Co on September 10, 2024 and sell it today you would earn a total of 156.00 from holding CIMC Vehicles Co or generate 18.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Publishing Media vs. CIMC Vehicles Co
Performance |
Timeline |
Shandong Publishing Media |
CIMC Vehicles |
Shandong Publishing and CIMC Vehicles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Publishing and CIMC Vehicles
The main advantage of trading using opposite Shandong Publishing and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing 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.Shandong Publishing vs. Industrial and Commercial | Shandong Publishing vs. Agricultural Bank of | Shandong Publishing vs. China Construction Bank | Shandong Publishing 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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