Correlation Between SAIC and Chongqing Shunbo
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By analyzing existing cross correlation between SAIC Motor Corp and Chongqing Shunbo Aluminum, you can compare the effects of market volatilities on SAIC and Chongqing Shunbo 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 SAIC with a short position of Chongqing Shunbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAIC and Chongqing Shunbo.
Diversification Opportunities for SAIC and Chongqing Shunbo
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAIC and Chongqing is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding SAIC Motor Corp and Chongqing Shunbo Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Shunbo Aluminum and SAIC 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 SAIC Motor Corp are associated (or correlated) with Chongqing Shunbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Shunbo Aluminum has no effect on the direction of SAIC i.e., SAIC and Chongqing Shunbo go up and down completely randomly.
Pair Corralation between SAIC and Chongqing Shunbo
Assuming the 90 days trading horizon SAIC Motor Corp is expected to generate 0.79 times more return on investment than Chongqing Shunbo. However, SAIC Motor Corp is 1.27 times less risky than Chongqing Shunbo. It trades about 0.02 of its potential returns per unit of risk. Chongqing Shunbo Aluminum is currently generating about -0.03 per unit of risk. If you would invest 1,467 in SAIC Motor Corp on October 16, 2024 and sell it today you would earn a total of 160.00 from holding SAIC Motor Corp or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
SAIC Motor Corp vs. Chongqing Shunbo Aluminum
Performance |
| Timeline |
| SAIC Motor Corp |
| Chongqing Shunbo Aluminum |
SAIC and Chongqing Shunbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAIC and Chongqing Shunbo
The main advantage of trading using opposite SAIC and Chongqing Shunbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAIC position performs unexpectedly, Chongqing Shunbo 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 Chongqing Shunbo will offset losses from the drop in Chongqing Shunbo's long position.| SAIC vs. Kontour Medical Technology | SAIC vs. Chongqing Shunbo Aluminum | SAIC vs. Winner Medical Co | SAIC vs. Eyebright Medical Technology |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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