Correlation Between CIMC Vehicles and Sinomach Automobile
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By analyzing existing cross correlation between CIMC Vehicles Co and Sinomach Automobile Co, you can compare the effects of market volatilities on CIMC Vehicles and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Sinomach Automobile.
Diversification Opportunities for CIMC Vehicles and Sinomach Automobile
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CIMC and Sinomach is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Sinomach Automobile go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Sinomach Automobile
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 0.91 times more return on investment than Sinomach Automobile. However, CIMC Vehicles Co is 1.1 times less risky than Sinomach Automobile. It trades about 0.03 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.0 per unit of risk. If you would invest 802.00 in CIMC Vehicles Co on September 3, 2024 and sell it today you would earn a total of 184.00 from holding CIMC Vehicles Co or generate 22.94% 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. Sinomach Automobile Co
Performance |
| Timeline |
| CIMC Vehicles |
| Sinomach Automobile |
CIMC Vehicles and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Sinomach Automobile
The main advantage of trading using opposite CIMC Vehicles and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's 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 |
| Sinomach Automobile vs. PetroChina Co Ltd | Sinomach Automobile vs. China Mobile Limited | Sinomach Automobile vs. Industrial and Commercial | Sinomach Automobile vs. China Life Insurance |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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