Correlation Between Songz Automobile and Cinda Securities
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By analyzing existing cross correlation between Songz Automobile Air and Cinda Securities Co, you can compare the effects of market volatilities on Songz Automobile and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Cinda Securities.
Diversification Opportunities for Songz Automobile and Cinda Securities
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Songz and Cinda is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Songz Automobile i.e., Songz Automobile and Cinda Securities go up and down completely randomly.
Pair Corralation between Songz Automobile and Cinda Securities
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 0.94 times more return on investment than Cinda Securities. However, Songz Automobile Air is 1.07 times less risky than Cinda Securities. It trades about 0.09 of its potential returns per unit of risk. Cinda Securities Co is currently generating about -0.16 per unit of risk. If you would invest 669.00 in Songz Automobile Air on October 24, 2024 and sell it today you would earn a total of 24.00 from holding Songz Automobile Air or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Songz Automobile Air vs. Cinda Securities Co
Performance |
| Timeline |
| Songz Automobile Air |
| Cinda Securities |
Songz Automobile and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Cinda Securities
The main advantage of trading using opposite Songz Automobile and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| Songz Automobile vs. Jiahe Foods Industry | Songz Automobile vs. Qingdao Foods Co | Songz Automobile vs. Ningxia Building Materials | Songz Automobile vs. Cangzhou Mingzhu Plastic |
| Cinda Securities vs. Jiangsu Xinri E Vehicle | Cinda Securities vs. Shenzhen Zqgame | Cinda Securities vs. Guangzhou Automobile Group | Cinda Securities vs. Cansino Biologics |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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