Correlation Between Chongqing Sulian and Sinomach Automobile
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By analyzing existing cross correlation between Chongqing Sulian Plastic and Sinomach Automobile Co, you can compare the effects of market volatilities on Chongqing Sulian 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 Chongqing Sulian with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and Sinomach Automobile.
Diversification Opportunities for Chongqing Sulian and Sinomach Automobile
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Sinomach is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Chongqing Sulian 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 Chongqing Sulian Plastic 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 Chongqing Sulian i.e., Chongqing Sulian and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Chongqing Sulian and Sinomach Automobile
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to generate 1.17 times more return on investment than Sinomach Automobile. However, Chongqing Sulian is 1.17 times more volatile than Sinomach Automobile Co. It trades about 0.02 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about -0.14 per unit of risk. If you would invest 2,669 in Chongqing Sulian Plastic on October 22, 2024 and sell it today you would earn a total of 10.00 from holding Chongqing Sulian Plastic or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sulian Plastic vs. Sinomach Automobile Co
Performance |
| Timeline |
| Chongqing Sulian Plastic |
| Sinomach Automobile |
Chongqing Sulian and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sulian and Sinomach Automobile
The main advantage of trading using opposite Chongqing Sulian and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian 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.| Chongqing Sulian vs. Bosera CMSK Industrial | Chongqing Sulian vs. Qingdao Choho Industrial | Chongqing Sulian vs. Fibocom Wireless | Chongqing Sulian vs. Guangzhou Haozhi Industrial |
| Sinomach Automobile vs. Zhongyin Babi Food | Sinomach Automobile vs. Suzhou Weizhixiang Food | Sinomach Automobile vs. Panda Dairy Corp | Sinomach Automobile vs. Chongqing Sulian Plastic |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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