Correlation Between China Asset and Sinomach Automobile
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By analyzing existing cross correlation between China Asset Management and Sinomach Automobile Co, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Sinomach Automobile.
Diversification Opportunities for China Asset and Sinomach Automobile
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Sinomach is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and China Asset 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 China Asset Management 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 China Asset i.e., China Asset and Sinomach Automobile go up and down completely randomly.
Pair Corralation between China Asset and Sinomach Automobile
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.29 times more return on investment than Sinomach Automobile. However, China Asset Management is 3.47 times less risky than Sinomach Automobile. It trades about 0.09 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about -0.02 per unit of risk. If you would invest 266.00 in China Asset Management on October 16, 2024 and sell it today you would earn a total of 107.00 from holding China Asset Management or generate 40.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Sinomach Automobile Co
Performance |
| Timeline |
| China Asset Management |
| Sinomach Automobile |
China Asset and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Sinomach Automobile
The main advantage of trading using opposite China Asset and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Industrial Bank Co | China Asset vs. Guosheng Financial Holding | China Asset vs. Agricultural Bank of | China Asset vs. Shenwu Energy Saving |
| Sinomach Automobile vs. Ningbo Tip Rubber | Sinomach Automobile vs. China Asset Management | Sinomach Automobile vs. Nuode Investment Co | Sinomach Automobile vs. Jinsanjiang Silicon Material |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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