Correlation Between CIMC Vehicles and Shandong Iron
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By analyzing existing cross correlation between CIMC Vehicles Co and Shandong Iron and, you can compare the effects of market volatilities on CIMC Vehicles and Shandong Iron 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 Shandong Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Shandong Iron.
Diversification Opportunities for CIMC Vehicles and Shandong Iron
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CIMC and Shandong is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Shandong Iron and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Iron 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 Shandong Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Iron has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Shandong Iron go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Shandong Iron
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 0.64 times more return on investment than Shandong Iron. However, CIMC Vehicles Co is 1.55 times less risky than Shandong Iron. It trades about -0.47 of its potential returns per unit of risk. Shandong Iron and is currently generating about -0.55 per unit of risk. If you would invest 972.00 in CIMC Vehicles Co on October 16, 2024 and sell it today you would lose (100.00) from holding CIMC Vehicles Co or give up 10.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Shandong Iron and
Performance |
| Timeline |
| CIMC Vehicles |
| Shandong Iron |
CIMC Vehicles and Shandong Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Shandong Iron
The main advantage of trading using opposite CIMC Vehicles and Shandong Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Shandong Iron 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 Shandong Iron will offset losses from the drop in Shandong Iron's long position.| CIMC Vehicles vs. Jiangsu Financial Leasing | CIMC Vehicles vs. Guangdong Jingyi Metal | CIMC Vehicles vs. Shenwu Energy Saving | CIMC Vehicles vs. Xiamen Bank Co |
| Shandong Iron vs. Zijin Mining Group | Shandong Iron vs. Wanhua Chemical Group | Shandong Iron vs. Baoshan Iron Steel | Shandong Iron vs. Shandong Gold Mining |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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