Correlation Between CIMC Vehicles and Changchun High
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By analyzing existing cross correlation between CIMC Vehicles Co and Changchun High New, you can compare the effects of market volatilities on CIMC Vehicles and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Changchun High.
Diversification Opportunities for CIMC Vehicles and Changchun High
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIMC and Changchun is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Changchun High go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Changchun High
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 1.25 times more return on investment than Changchun High. However, CIMC Vehicles is 1.25 times more volatile than Changchun High New. It trades about 0.02 of its potential returns per unit of risk. Changchun High New is currently generating about -0.06 per unit of risk. If you would invest 809.00 in CIMC Vehicles Co on October 15, 2024 and sell it today you would earn a total of 55.00 from holding CIMC Vehicles Co or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Changchun High New
Performance |
| Timeline |
| CIMC Vehicles |
| Changchun High New |
CIMC Vehicles and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Changchun High
The main advantage of trading using opposite CIMC Vehicles and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| CIMC Vehicles vs. Panda Financial Holding | CIMC Vehicles vs. Northern United Publishing | CIMC Vehicles vs. Industrial Bank Co | CIMC Vehicles vs. Guosheng Financial Holding |
| Changchun High vs. Maxvision Technology Corp | Changchun High vs. Kingsignal Technology Co | Changchun High vs. Bangyan Technology Co | Changchun High vs. Soyea 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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