Correlation Between CIMC Vehicles and Zhejiang Qianjiang
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By analyzing existing cross correlation between CIMC Vehicles Co and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on CIMC Vehicles and Zhejiang Qianjiang 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 Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Zhejiang Qianjiang.
Diversification Opportunities for CIMC Vehicles and Zhejiang Qianjiang
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CIMC and Zhejiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang 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 Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Zhejiang Qianjiang
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 0.95 times more return on investment than Zhejiang Qianjiang. However, CIMC Vehicles Co is 1.05 times less risky than Zhejiang Qianjiang. It trades about 0.03 of its potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.01 per unit of risk. If you would invest 792.00 in CIMC Vehicles Co on September 4, 2024 and sell it today you would earn a total of 219.00 from holding CIMC Vehicles Co or generate 27.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| CIMC Vehicles |
| Zhejiang Qianjiang |
CIMC Vehicles and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Zhejiang Qianjiang
The main advantage of trading using opposite CIMC Vehicles and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| CIMC Vehicles vs. Bank of China | CIMC Vehicles vs. Kweichow Moutai Co | CIMC Vehicles vs. PetroChina Co Ltd | CIMC Vehicles vs. Bank of Communications |
| Zhejiang Qianjiang vs. Bank of China | Zhejiang Qianjiang vs. Kweichow Moutai Co | Zhejiang Qianjiang vs. PetroChina Co Ltd | Zhejiang Qianjiang vs. Bank of Communications |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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