Correlation Between Sinomach Automobile and Tieling Newcity
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By analyzing existing cross correlation between Sinomach Automobile Co and Tieling Newcity Investment, you can compare the effects of market volatilities on Sinomach Automobile and Tieling Newcity 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 Tieling Newcity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Tieling Newcity.
Diversification Opportunities for Sinomach Automobile and Tieling Newcity
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sinomach and Tieling is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Tieling Newcity Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tieling Newcity Inve 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 Tieling Newcity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tieling Newcity Inve has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Tieling Newcity go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Tieling Newcity
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 2.73 times less return on investment than Tieling Newcity. In addition to that, Sinomach Automobile is 1.09 times more volatile than Tieling Newcity Investment. It trades about 0.07 of its total potential returns per unit of risk. Tieling Newcity Investment is currently generating about 0.22 per unit of volatility. If you would invest 199.00 in Tieling Newcity Investment on October 24, 2024 and sell it today you would earn a total of 108.00 from holding Tieling Newcity Investment or generate 54.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Tieling Newcity Investment
Performance |
| Timeline |
| Sinomach Automobile |
| Tieling Newcity Inve |
Sinomach Automobile and Tieling Newcity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Tieling Newcity
The main advantage of trading using opposite Sinomach Automobile and Tieling Newcity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Tieling Newcity 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 Tieling Newcity will offset losses from the drop in Tieling Newcity's long position.| Sinomach Automobile vs. Lootom Telcovideo Network | Sinomach Automobile vs. Postal Savings Bank | Sinomach Automobile vs. Hangzhou Arcvideo Technology | Sinomach Automobile vs. GRG Banking Equipment |
| Tieling Newcity vs. Guangzhou Automobile Group | Tieling Newcity vs. Fuda Alloy Materials | Tieling Newcity vs. Ningxia Younglight Chemicals | Tieling Newcity vs. Sinomach Automobile Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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