Correlation Between Taihai Manoir and Sinomach Automobile
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By analyzing existing cross correlation between Taihai Manoir Nuclear and Sinomach Automobile Co, you can compare the effects of market volatilities on Taihai Manoir 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 Taihai Manoir with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taihai Manoir and Sinomach Automobile.
Diversification Opportunities for Taihai Manoir and Sinomach Automobile
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Taihai and Sinomach is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Taihai Manoir Nuclear and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Taihai Manoir 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 Taihai Manoir Nuclear 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 Taihai Manoir i.e., Taihai Manoir and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Taihai Manoir and Sinomach Automobile
Assuming the 90 days trading horizon Taihai Manoir Nuclear is expected to generate 2.59 times more return on investment than Sinomach Automobile. However, Taihai Manoir is 2.59 times more volatile than Sinomach Automobile Co. It trades about 0.17 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.01 per unit of risk. If you would invest 473.00 in Taihai Manoir Nuclear on September 13, 2024 and sell it today you would earn a total of 78.00 from holding Taihai Manoir Nuclear or generate 16.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Taihai Manoir Nuclear vs. Sinomach Automobile Co
Performance |
| Timeline |
| Taihai Manoir Nuclear |
| Sinomach Automobile |
Taihai Manoir and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taihai Manoir and Sinomach Automobile
The main advantage of trading using opposite Taihai Manoir and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taihai Manoir 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.| Taihai Manoir vs. Yili Chuanning Biotechnology | Taihai Manoir vs. ROPEOK Technology Group | Taihai Manoir vs. Tianjin Ruixin Technology | Taihai Manoir vs. Changchun BCHT Biotechnology |
| Sinomach Automobile vs. Kweichow Moutai Co | Sinomach Automobile vs. Contemporary Amperex Technology | Sinomach Automobile vs. G bits Network Technology | Sinomach Automobile vs. BYD 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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