Correlation Between Sinomach Automobile and Beijing Shunxin
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By analyzing existing cross correlation between Sinomach Automobile Co and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on Sinomach Automobile and Beijing Shunxin 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 Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Beijing Shunxin.
Diversification Opportunities for Sinomach Automobile and Beijing Shunxin
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Beijing is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri 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 Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Beijing Shunxin go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Beijing Shunxin
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 0.96 times more return on investment than Beijing Shunxin. However, Sinomach Automobile Co is 1.04 times less risky than Beijing Shunxin. It trades about 0.24 of its potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about -0.17 per unit of risk. If you would invest 592.00 in Sinomach Automobile Co on November 4, 2024 and sell it today you would earn a total of 46.00 from holding Sinomach Automobile Co or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Beijing Shunxin Agriculture
Performance |
| Timeline |
| Sinomach Automobile |
| Beijing Shunxin Agri |
Sinomach Automobile and Beijing Shunxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Beijing Shunxin
The main advantage of trading using opposite Sinomach Automobile and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Beijing Shunxin 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 Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.| Sinomach Automobile vs. GRG Banking Equipment | Sinomach Automobile vs. Montage Technology Co | Sinomach Automobile vs. Dr Peng Telecom | Sinomach Automobile vs. Holitech Technology Co |
| Beijing Shunxin vs. Xinxiang Chemical Fiber | Beijing Shunxin vs. Xilong Chemical Co | Beijing Shunxin vs. Zhongyin Babi Food | Beijing Shunxin vs. Guilin Seamild Foods |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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