Correlation Between Huasi Agricultural and Sinomach Automobile
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By analyzing existing cross correlation between Huasi Agricultural Development and Sinomach Automobile Co, you can compare the effects of market volatilities on Huasi Agricultural 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 Huasi Agricultural with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Sinomach Automobile.
Diversification Opportunities for Huasi Agricultural and Sinomach Automobile
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huasi and Sinomach is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Huasi Agricultural 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 Huasi Agricultural Development 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 Huasi Agricultural i.e., Huasi Agricultural and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Sinomach Automobile
Assuming the 90 days trading horizon Huasi Agricultural Development is expected to generate 1.06 times more return on investment than Sinomach Automobile. However, Huasi Agricultural is 1.06 times more volatile than Sinomach Automobile Co. It trades about 0.01 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about -0.02 per unit of risk. If you would invest 452.00 in Huasi Agricultural Development on August 31, 2024 and sell it today you would lose (15.00) from holding Huasi Agricultural Development or give up 3.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Sinomach Automobile Co
Performance |
| Timeline |
| Huasi Agricultural |
| Sinomach Automobile |
Huasi Agricultural and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Sinomach Automobile
The main advantage of trading using opposite Huasi Agricultural and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural 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.| Huasi Agricultural vs. China State Construction | Huasi Agricultural vs. China Merchants Shekou | Huasi Agricultural vs. Huafa Industrial Co | Huasi Agricultural vs. China International Capital |
| Sinomach Automobile vs. China State Construction | Sinomach Automobile vs. China Merchants Shekou | Sinomach Automobile vs. Huafa Industrial Co | Sinomach Automobile vs. China International Capital |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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