Correlation Between CIMC Vehicles and Weihai Honglin
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By analyzing existing cross correlation between CIMC Vehicles Co and Weihai Honglin Electronic, you can compare the effects of market volatilities on CIMC Vehicles and Weihai Honglin 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 Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Weihai Honglin.
Diversification Opportunities for CIMC Vehicles and Weihai Honglin
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CIMC and Weihai is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic 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 Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Weihai Honglin go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Weihai Honglin
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 0.96 times more return on investment than Weihai Honglin. However, CIMC Vehicles Co is 1.04 times less risky than Weihai Honglin. It trades about 0.03 of its potential returns per unit of risk. Weihai Honglin Electronic is currently generating about -0.03 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 | 87.21% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Weihai Honglin Electronic
Performance |
| Timeline |
| CIMC Vehicles |
| Weihai Honglin Electronic |
CIMC Vehicles and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Weihai Honglin
The main advantage of trading using opposite CIMC Vehicles and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin'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 |
| Weihai Honglin vs. Tianjin Pengling Rubber | Weihai Honglin vs. Shanghai CEO Environmental | Weihai Honglin vs. China Railway Materials | Weihai Honglin vs. Innovative Medical Management |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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