Correlation Between Guangdong Shenglu and CIMC Vehicles
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and CIMC Vehicles Co, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and CIMC Vehicles.
Diversification Opportunities for Guangdong Shenglu and CIMC Vehicles
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and CIMC is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and CIMC Vehicles
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the CIMC Vehicles. In addition to that, Guangdong Shenglu is 1.08 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 802.00 in CIMC Vehicles Co on September 3, 2024 and sell it today you would earn a total of 184.00 from holding CIMC Vehicles Co or generate 22.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. CIMC Vehicles Co
Performance |
| Timeline |
| Guangdong Shenglu |
| CIMC Vehicles |
Guangdong Shenglu and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and CIMC Vehicles
The main advantage of trading using opposite Guangdong Shenglu and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Agricultural Bank of | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Postal Savings Bank | Guangdong Shenglu vs. Bank of Communications |
| CIMC Vehicles vs. Bangyan Technology Co | CIMC Vehicles vs. Uroica Mining Safety | CIMC Vehicles vs. Shengda Mining Co | CIMC Vehicles vs. Shenyang Huitian Thermal |
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 Stocks Directory module to find actively traded stocks across global markets.
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