Correlation Between Songz Automobile and Shenyang Huitian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Songz Automobile Air and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Songz Automobile and Shenyang Huitian 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 Songz Automobile with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Shenyang Huitian.
Diversification Opportunities for Songz Automobile and Shenyang Huitian
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Songz and Shenyang is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal and Songz Automobile 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 Songz Automobile Air are associated (or correlated) with Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Songz Automobile i.e., Songz Automobile and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Songz Automobile and Shenyang Huitian
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 0.56 times more return on investment than Shenyang Huitian. However, Songz Automobile Air is 1.79 times less risky than Shenyang Huitian. It trades about -0.03 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about -0.05 per unit of risk. If you would invest 689.00 in Songz Automobile Air on October 30, 2024 and sell it today you would lose (20.00) from holding Songz Automobile Air or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Songz Automobile Air |
| Shenyang Huitian Thermal |
Songz Automobile and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Shenyang Huitian
The main advantage of trading using opposite Songz Automobile and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Songz Automobile vs. Kweichow Moutai Co | Songz Automobile vs. Jiangsu Pacific Quartz | Songz Automobile vs. Shenzhen Transsion Holdings | Songz Automobile vs. Beijing Roborock Technology |
| Shenyang Huitian vs. Tsingtao Brewery Co | Shenyang Huitian vs. Hainan Airlines Co | Shenyang Huitian vs. Panda Financial Holding | Shenyang Huitian vs. Guangzhou Zhujiang Brewery |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |