Correlation Between Shenwu Energy and CIMC Vehicles
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By analyzing existing cross correlation between Shenwu Energy Saving and CIMC Vehicles Co, you can compare the effects of market volatilities on Shenwu Energy 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 Shenwu Energy with a short position of CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and CIMC Vehicles.
Diversification Opportunities for Shenwu Energy and CIMC Vehicles
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenwu and CIMC is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles and Shenwu Energy 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 Shenwu Energy Saving 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 Shenwu Energy i.e., Shenwu Energy and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Shenwu Energy and CIMC Vehicles
Assuming the 90 days trading horizon Shenwu Energy Saving is expected to under-perform the CIMC Vehicles. In addition to that, Shenwu Energy is 4.11 times more volatile than CIMC Vehicles Co. It trades about -0.07 of its total potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.12 per unit of volatility. If you would invest 986.00 in CIMC Vehicles Co on October 30, 2024 and sell it today you would lose (63.00) from holding CIMC Vehicles Co or give up 6.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. CIMC Vehicles Co
Performance |
| Timeline |
| Shenwu Energy Saving |
| CIMC Vehicles |
Shenwu Energy and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and CIMC Vehicles
The main advantage of trading using opposite Shenwu Energy and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy 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.| Shenwu Energy vs. Industrial and Commercial | Shenwu Energy vs. Agricultural Bank of | Shenwu Energy vs. China Construction Bank | Shenwu Energy vs. Bank of China |
| CIMC Vehicles vs. Lianhe Chemical Technology | CIMC Vehicles vs. Cicc Fund Management | CIMC Vehicles vs. Harvest Fund Management | CIMC Vehicles vs. Dymatic Chemicals |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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