Correlation Between Sinomach Automobile and Hunan Nanling
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By analyzing existing cross correlation between Sinomach Automobile Co and Hunan Nanling Industrial, you can compare the effects of market volatilities on Sinomach Automobile and Hunan Nanling 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 Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Hunan Nanling.
Diversification Opportunities for Sinomach Automobile and Hunan Nanling
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Hunan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Hunan Nanling Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Nanling Industrial 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 Hunan Nanling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Nanling Industrial has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Hunan Nanling go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Hunan Nanling
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 1.01 times more return on investment than Hunan Nanling. However, Sinomach Automobile is 1.01 times more volatile than Hunan Nanling Industrial. It trades about 0.12 of its potential returns per unit of risk. Hunan Nanling Industrial is currently generating about 0.02 per unit of risk. If you would invest 556.00 in Sinomach Automobile Co on August 31, 2024 and sell it today you would earn a total of 99.00 from holding Sinomach Automobile Co or generate 17.81% 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. Hunan Nanling Industrial
Performance |
| Timeline |
| Sinomach Automobile |
| Hunan Nanling Industrial |
Sinomach Automobile and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Hunan Nanling
The main advantage of trading using opposite Sinomach Automobile and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Hunan Nanling 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 Hunan Nanling will offset losses from the drop in Hunan Nanling's long position.| Sinomach Automobile vs. China State Construction | Sinomach Automobile vs. China Merchants Shekou | Sinomach Automobile vs. Huafa Industrial Co | Sinomach Automobile vs. China International Capital |
| Hunan Nanling vs. China Publishing Media | Hunan Nanling vs. Jiangsu Phoenix Publishing | Hunan Nanling vs. Shanghai Material Trading | Hunan Nanling vs. Offcn Education Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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