Correlation Between China Vanke and Sinomach Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Vanke Co and Sinomach Automobile Co, you can compare the effects of market volatilities on China Vanke and Sinomach Automobile 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 China Vanke with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Sinomach Automobile.
Diversification Opportunities for China Vanke and Sinomach Automobile
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Sinomach is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and China Vanke 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 China Vanke Co are associated (or correlated) with Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of China Vanke i.e., China Vanke and Sinomach Automobile go up and down completely randomly.
Pair Corralation between China Vanke and Sinomach Automobile
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Sinomach Automobile. In addition to that, China Vanke is 1.02 times more volatile than Sinomach Automobile Co. It trades about -0.12 of its total potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.16 per unit of volatility. If you would invest 636.00 in Sinomach Automobile Co on September 5, 2024 and sell it today you would earn a total of 42.00 from holding Sinomach Automobile Co or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Sinomach Automobile Co
Performance |
| Timeline |
| China Vanke |
| Sinomach Automobile |
China Vanke and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Sinomach Automobile
The main advantage of trading using opposite China Vanke and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| China Vanke vs. Nanjing Putian Telecommunications | China Vanke vs. Tianjin Realty Development | China Vanke vs. Shenyang Huitian Thermal | China Vanke vs. Shenzhen Changfang Light |
| Sinomach Automobile vs. China State Construction | Sinomach Automobile vs. Poly Real Estate | Sinomach Automobile vs. China Vanke Co | Sinomach Automobile vs. China Merchants Shekou |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |