Correlation Between CIMC Vehicles and Central Plains
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By analyzing existing cross correlation between CIMC Vehicles Co and Central Plains Environment, you can compare the effects of market volatilities on CIMC Vehicles and Central Plains 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 CIMC Vehicles with a short position of Central Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Central Plains.
Diversification Opportunities for CIMC Vehicles and Central Plains
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CIMC and Central is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Central Plains Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plains Envir and CIMC Vehicles 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 CIMC Vehicles Co are associated (or correlated) with Central Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plains Envir has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Central Plains go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Central Plains
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to under-perform the Central Plains. In addition to that, CIMC Vehicles is 1.23 times more volatile than Central Plains Environment. It trades about -0.13 of its total potential returns per unit of risk. Central Plains Environment is currently generating about 0.02 per unit of volatility. If you would invest 883.00 in Central Plains Environment on September 3, 2024 and sell it today you would earn a total of 5.00 from holding Central Plains Environment or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Central Plains Environment
Performance |
| Timeline |
| CIMC Vehicles |
| Central Plains Envir |
CIMC Vehicles and Central Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Central Plains
The main advantage of trading using opposite CIMC Vehicles and Central Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Central Plains 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 Central Plains will offset losses from the drop in Central Plains' long position.| CIMC Vehicles vs. Bangyan Technology Co | CIMC Vehicles vs. Uroica Mining Safety | CIMC Vehicles vs. Shengda Mining Co | CIMC Vehicles vs. Shenyang Huitian Thermal |
| Central Plains vs. Cultural Investment Holdings | Central Plains vs. Gome Telecom Equipment | Central Plains vs. Bus Online Co | Central Plains vs. Holitech Technology Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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