Correlation Between CIMC Vehicles and Jiangsu Xinri
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By analyzing existing cross correlation between CIMC Vehicles Co and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on CIMC Vehicles and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Jiangsu Xinri.
Diversification Opportunities for CIMC Vehicles and Jiangsu Xinri
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIMC and Jiangsu is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Jiangsu Xinri
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 0.55 times more return on investment than Jiangsu Xinri. However, CIMC Vehicles Co is 1.8 times less risky than Jiangsu Xinri. It trades about -0.17 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.2 per unit of risk. If you would invest 957.00 in CIMC Vehicles Co on October 20, 2024 and sell it today you would lose (49.00) from holding CIMC Vehicles Co or give up 5.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| CIMC Vehicles |
| Jiangsu Xinri E |
CIMC Vehicles and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Jiangsu Xinri
The main advantage of trading using opposite CIMC Vehicles and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| CIMC Vehicles vs. Aba Chemicals Corp | CIMC Vehicles vs. Haima Automobile Group | CIMC Vehicles vs. Songz Automobile Air | CIMC Vehicles vs. Tongyu Communication |
| Jiangsu Xinri vs. Markor International Home | Jiangsu Xinri vs. Shanghai Jinfeng Wine | Jiangsu Xinri vs. Innovative Medical Management | Jiangsu Xinri vs. Anhui Gujing Distillery |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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