Correlation Between CIMC Vehicles and Chahua Modern
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By analyzing existing cross correlation between CIMC Vehicles Co and Chahua Modern Housewares, you can compare the effects of market volatilities on CIMC Vehicles and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Chahua Modern.
Diversification Opportunities for CIMC Vehicles and Chahua Modern
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between CIMC and Chahua is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Chahua Modern go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Chahua Modern
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, CIMC Vehicles Co is 2.47 times less risky than Chahua Modern. The stock trades about -0.12 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,187 in Chahua Modern Housewares on October 30, 2024 and sell it today you would earn a total of 99.00 from holding Chahua Modern Housewares or generate 4.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CIMC Vehicles Co vs. Chahua Modern Housewares
Performance |
Timeline |
CIMC Vehicles |
Chahua Modern Housewares |
CIMC Vehicles and Chahua Modern Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CIMC Vehicles and Chahua Modern
The main advantage of trading using opposite CIMC Vehicles and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.CIMC Vehicles vs. Lianhe Chemical Technology | CIMC Vehicles vs. Cicc Fund Management | CIMC Vehicles vs. Harvest Fund Management | CIMC Vehicles vs. Dymatic Chemicals |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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