Correlation Between Zhejiang Qianjiang and CIMC Vehicles
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By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and CIMC Vehicles Co, you can compare the effects of market volatilities on Zhejiang Qianjiang 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 Zhejiang Qianjiang with a short position of CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and CIMC Vehicles.
Diversification Opportunities for Zhejiang Qianjiang and CIMC Vehicles
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and CIMC is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles and Zhejiang Qianjiang 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 Zhejiang Qianjiang Motorcycle 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 Zhejiang Qianjiang i.e., Zhejiang Qianjiang and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and CIMC Vehicles
Assuming the 90 days trading horizon Zhejiang Qianjiang is expected to generate 3.07 times less return on investment than CIMC Vehicles. In addition to that, Zhejiang Qianjiang is 1.05 times more volatile than CIMC Vehicles Co. It trades about 0.01 of its total potential returns per unit of risk. CIMC Vehicles Co is currently generating about 0.03 per unit of volatility. If you would invest 792.00 in CIMC Vehicles Co on September 4, 2024 and sell it today you would earn a total of 219.00 from holding CIMC Vehicles Co or generate 27.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. CIMC Vehicles Co
Performance |
| Timeline |
| Zhejiang Qianjiang |
| CIMC Vehicles |
Zhejiang Qianjiang and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Qianjiang and CIMC Vehicles
The main advantage of trading using opposite Zhejiang Qianjiang and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang 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.| Zhejiang Qianjiang vs. Bank of China | Zhejiang Qianjiang vs. Kweichow Moutai Co | Zhejiang Qianjiang vs. PetroChina Co Ltd | Zhejiang Qianjiang vs. Bank of Communications |
| CIMC Vehicles vs. Bank of China | CIMC Vehicles vs. Kweichow Moutai Co | CIMC Vehicles vs. PetroChina Co Ltd | CIMC Vehicles vs. Bank of Communications |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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