Correlation Between Sinomach Automobile and Central Plains
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By analyzing existing cross correlation between Sinomach Automobile Co and Central Plains Environment, you can compare the effects of market volatilities on Sinomach Automobile and Central Plains 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 Sinomach Automobile with a short position of Central Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Central Plains.
Diversification Opportunities for Sinomach Automobile and Central Plains
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Central is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Central Plains Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plains Envir and Sinomach Automobile 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 Sinomach Automobile Co are associated (or correlated) with Central Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plains Envir has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Central Plains go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Central Plains
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 0.98 times more return on investment than Central Plains. However, Sinomach Automobile Co is 1.02 times less risky than Central Plains. It trades about 0.07 of its potential returns per unit of risk. Central Plains Environment is currently generating about -0.02 per unit of risk. If you would invest 642.00 in Sinomach Automobile Co on September 1, 2024 and sell it today you would earn a total of 19.00 from holding Sinomach Automobile Co or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Central Plains Environment
Performance |
| Timeline |
| Sinomach Automobile |
| Central Plains Envir |
Sinomach Automobile and Central Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Central Plains
The main advantage of trading using opposite Sinomach Automobile and Central Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Central Plains 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 Central Plains will offset losses from the drop in Central Plains' long position.| Sinomach Automobile vs. Ming Yang Smart | Sinomach Automobile vs. 159681 | Sinomach Automobile vs. 159005 | Sinomach Automobile vs. Loctek Ergonomic Technology |
| Central Plains vs. Sinomach Automobile Co | Central Plains vs. Guangdong Shenglu Telecommunication | Central Plains vs. CIMC Vehicles Co | Central Plains vs. Zhongtong Guomai Communication |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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