Correlation Between CIMC Vehicles and Shanghai Shibei
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By analyzing existing cross correlation between CIMC Vehicles Co and Shanghai Shibei Hi Tech, you can compare the effects of market volatilities on CIMC Vehicles and Shanghai Shibei 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 Shanghai Shibei. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Shanghai Shibei.
Diversification Opportunities for CIMC Vehicles and Shanghai Shibei
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CIMC and Shanghai is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Shanghai Shibei Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shibei Hi 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 Shanghai Shibei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shibei Hi has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Shanghai Shibei go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Shanghai Shibei
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 0.56 times more return on investment than Shanghai Shibei. However, CIMC Vehicles Co is 1.79 times less risky than Shanghai Shibei. It trades about -0.11 of its potential returns per unit of risk. Shanghai Shibei Hi Tech is currently generating about -0.22 per unit of risk. If you would invest 934.00 in CIMC Vehicles Co on October 28, 2024 and sell it today you would lose (25.00) from holding CIMC Vehicles Co or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Shanghai Shibei Hi Tech
Performance |
| Timeline |
| CIMC Vehicles |
| Shanghai Shibei Hi |
CIMC Vehicles and Shanghai Shibei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Shanghai Shibei
The main advantage of trading using opposite CIMC Vehicles and Shanghai Shibei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Shanghai Shibei 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 Shanghai Shibei will offset losses from the drop in Shanghai Shibei's long position.| CIMC Vehicles vs. Kweichow Moutai Co | CIMC Vehicles vs. Contemporary Amperex Technology | CIMC Vehicles vs. G bits Network Technology | CIMC Vehicles vs. Beijing Roborock Technology |
| Shanghai Shibei vs. Servyou Software Group | Shanghai Shibei vs. Eyebright Medical Technology | Shanghai Shibei vs. Bohai Leasing Co | Shanghai Shibei vs. Bingo Software 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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