Correlation Between Xiamen Jihong and Sinomach Automobile
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By analyzing existing cross correlation between Xiamen Jihong Package and Sinomach Automobile Co, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Sinomach Automobile.
Diversification Opportunities for Xiamen Jihong and Sinomach Automobile
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiamen and Sinomach is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Sinomach Automobile
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to generate 1.11 times more return on investment than Sinomach Automobile. However, Xiamen Jihong is 1.11 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 1,493 in Xiamen Jihong Package on October 18, 2024 and sell it today you would lose (222.00) from holding Xiamen Jihong Package or give up 14.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Sinomach Automobile Co
Performance |
| Timeline |
| Xiamen Jihong Package |
| Sinomach Automobile |
Xiamen Jihong and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Sinomach Automobile
The main advantage of trading using opposite Xiamen Jihong and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Fujian Oriental Silver | Xiamen Jihong vs. Chenzhou Jingui Silver | Xiamen Jihong vs. Xinjiang Baodi Mining | Xiamen Jihong vs. Eastern Air Logistics |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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