Correlation Between Sinomach Automobile and Zhejiang Qianjiang
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By analyzing existing cross correlation between Sinomach Automobile Co and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Sinomach Automobile and Zhejiang Qianjiang 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 Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Zhejiang Qianjiang.
Diversification Opportunities for Sinomach Automobile and Zhejiang Qianjiang
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Zhejiang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang 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 Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Zhejiang Qianjiang
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Zhejiang Qianjiang. In addition to that, Sinomach Automobile is 1.04 times more volatile than Zhejiang Qianjiang Motorcycle. It trades about 0.0 of its total potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.01 per unit of volatility. If you would invest 1,836 in Zhejiang Qianjiang Motorcycle on September 3, 2024 and sell it today you would lose (187.00) from holding Zhejiang Qianjiang Motorcycle or give up 10.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Sinomach Automobile |
| Zhejiang Qianjiang |
Sinomach Automobile and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Zhejiang Qianjiang
The main advantage of trading using opposite Sinomach Automobile and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Sinomach Automobile vs. PetroChina Co Ltd | Sinomach Automobile vs. China Mobile Limited | Sinomach Automobile vs. Industrial and Commercial | Sinomach Automobile vs. China Life Insurance |
| Zhejiang Qianjiang vs. PetroChina Co Ltd | Zhejiang Qianjiang vs. China Mobile Limited | Zhejiang Qianjiang vs. Industrial and Commercial | Zhejiang Qianjiang vs. China Life Insurance |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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