Correlation Between CIMC Vehicles and Shanghai Jin
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By analyzing existing cross correlation between CIMC Vehicles Co and Shanghai Jin Jiang, you can compare the effects of market volatilities on CIMC Vehicles and Shanghai Jin 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 Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Shanghai Jin.
Diversification Opportunities for CIMC Vehicles and Shanghai Jin
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CIMC and Shanghai is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Shanghai Jin go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Shanghai Jin
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to under-perform the Shanghai Jin. In addition to that, CIMC Vehicles is 1.38 times more volatile than Shanghai Jin Jiang. It trades about -0.59 of its total potential returns per unit of risk. Shanghai Jin Jiang is currently generating about -0.36 per unit of volatility. If you would invest 156.00 in Shanghai Jin Jiang on October 14, 2024 and sell it today you would lose (9.00) from holding Shanghai Jin Jiang or give up 5.77% 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. Shanghai Jin Jiang
Performance |
| Timeline |
| CIMC Vehicles |
| Shanghai Jin Jiang |
CIMC Vehicles and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Shanghai Jin
The main advantage of trading using opposite CIMC Vehicles and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Shanghai Jin 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 Jin will offset losses from the drop in Shanghai Jin's long position.| CIMC Vehicles vs. Gan Yuan Foods | CIMC Vehicles vs. Anji Foodstuff Co | CIMC Vehicles vs. Xiamen Jihong Package | CIMC Vehicles vs. Great Sun Foods Co |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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