Correlation Between Sinomach Automobile and Xiangyang Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinomach Automobile Co and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Sinomach Automobile and Xiangyang 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 Sinomach Automobile with a short position of Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Xiangyang Automobile.
Diversification Opportunities for Sinomach Automobile and Xiangyang Automobile
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomach and Xiangyang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Xiangyang Automobile
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 0.58 times more return on investment than Xiangyang Automobile. However, Sinomach Automobile Co is 1.71 times less risky than Xiangyang Automobile. It trades about 0.0 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about -0.01 per unit of risk. If you would invest 664.00 in Sinomach Automobile Co on August 28, 2024 and sell it today you would lose (2.00) from holding Sinomach Automobile Co or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Sinomach Automobile |
| Xiangyang Automobile |
Sinomach Automobile and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Xiangyang Automobile
The main advantage of trading using opposite Sinomach Automobile and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Xiangyang 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.| Sinomach Automobile vs. Citic Guoan Wine | Sinomach Automobile vs. Milkyway Chemical Supply | Sinomach Automobile vs. Easyhome New Retail | Sinomach Automobile vs. Sunny Loan Top |
| Xiangyang Automobile vs. Loongson Technology Corp | Xiangyang Automobile vs. Chongqing Road Bridge | Xiangyang Automobile vs. Shenzhen Fortune Trend | Xiangyang Automobile vs. Wuhan Xianglong Power |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |