Correlation Between Zhuzhou Feilu and Sinomach Automobile
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By analyzing existing cross correlation between Zhuzhou Feilu High Tech and Sinomach Automobile Co, you can compare the effects of market volatilities on Zhuzhou Feilu 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 Zhuzhou Feilu with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhuzhou Feilu and Sinomach Automobile.
Diversification Opportunities for Zhuzhou Feilu and Sinomach Automobile
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhuzhou and Sinomach is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zhuzhou Feilu High Tech and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Zhuzhou Feilu 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 Zhuzhou Feilu High Tech 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 Zhuzhou Feilu i.e., Zhuzhou Feilu and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Zhuzhou Feilu and Sinomach Automobile
Assuming the 90 days trading horizon Zhuzhou Feilu High Tech is expected to generate 1.42 times more return on investment than Sinomach Automobile. However, Zhuzhou Feilu is 1.42 times more volatile than Sinomach Automobile Co. It trades about 0.17 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.12 per unit of risk. If you would invest 501.00 in Zhuzhou Feilu High Tech on September 3, 2024 and sell it today you would earn a total of 211.00 from holding Zhuzhou Feilu High Tech or generate 42.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhuzhou Feilu High Tech vs. Sinomach Automobile Co
Performance |
| Timeline |
| Zhuzhou Feilu High |
| Sinomach Automobile |
Zhuzhou Feilu and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhuzhou Feilu and Sinomach Automobile
The main advantage of trading using opposite Zhuzhou Feilu and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhuzhou Feilu 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.| Zhuzhou Feilu vs. Sinomach Automobile Co | Zhuzhou Feilu vs. Ningbo Fangzheng Automobile | Zhuzhou Feilu vs. Guangdong Jingyi Metal | Zhuzhou Feilu vs. Qinghaihuading Industrial Co |
| Sinomach Automobile vs. PetroChina Co Ltd | Sinomach Automobile vs. China Mobile Limited | Sinomach Automobile vs. Industrial and Commercial | Sinomach Automobile vs. China Life Insurance |
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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