Correlation Between Southern PublishingMedia and CIMC Vehicles
Specify exactly 2 symbols:
By analyzing existing cross correlation between Southern PublishingMedia Co and CIMC Vehicles Co, you can compare the effects of market volatilities on Southern PublishingMedia 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 Southern PublishingMedia with a short position of CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and CIMC Vehicles.
Diversification Opportunities for Southern PublishingMedia and CIMC Vehicles
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Southern and CIMC is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles and Southern PublishingMedia 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 Southern PublishingMedia Co 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 Southern PublishingMedia i.e., Southern PublishingMedia and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Southern PublishingMedia and CIMC Vehicles
Assuming the 90 days trading horizon Southern PublishingMedia is expected to generate 1.06 times less return on investment than CIMC Vehicles. In addition to that, Southern PublishingMedia is 1.01 times more volatile than CIMC Vehicles Co. It trades about 0.1 of its total potential returns per unit of risk. CIMC Vehicles Co is currently generating about 0.11 per unit of volatility. If you would invest 833.00 in CIMC Vehicles Co on September 7, 2024 and sell it today you would earn a total of 162.00 from holding CIMC Vehicles Co or generate 19.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Southern PublishingMedia Co vs. CIMC Vehicles Co
Performance |
Timeline |
Southern PublishingMedia |
CIMC Vehicles |
Southern PublishingMedia and CIMC Vehicles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Southern PublishingMedia and CIMC Vehicles
The main advantage of trading using opposite Southern PublishingMedia and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern PublishingMedia 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.The idea behind Southern PublishingMedia Co and CIMC Vehicles Co 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.
CIMC Vehicles vs. Agricultural Bank of | CIMC Vehicles vs. Industrial and Commercial | CIMC Vehicles vs. Bank of China | CIMC Vehicles vs. PetroChina Co Ltd |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |