Correlation Between Sinomach Automobile and Cloud Live
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By analyzing existing cross correlation between Sinomach Automobile Co and Cloud Live Technology, you can compare the effects of market volatilities on Sinomach Automobile and Cloud Live 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 Cloud Live. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Cloud Live.
Diversification Opportunities for Sinomach Automobile and Cloud Live
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Cloud is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Cloud Live Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloud Live Technology 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 Cloud Live. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloud Live Technology has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Cloud Live go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Cloud Live
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 0.52 times more return on investment than Cloud Live. However, Sinomach Automobile Co is 1.92 times less risky than Cloud Live. It trades about -0.01 of its potential returns per unit of risk. Cloud Live Technology is currently generating about -0.14 per unit of risk. If you would invest 656.00 in Sinomach Automobile Co on November 6, 2024 and sell it today you would lose (18.00) from holding Sinomach Automobile Co or give up 2.74% 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. Cloud Live Technology
Performance |
| Timeline |
| Sinomach Automobile |
| Cloud Live Technology |
Sinomach Automobile and Cloud Live Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Cloud Live
The main advantage of trading using opposite Sinomach Automobile and Cloud Live positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Cloud Live 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 Cloud Live will offset losses from the drop in Cloud Live's long position.| Sinomach Automobile vs. Guangzhou KingTeller Technology | Sinomach Automobile vs. Shengda Mining Co | Sinomach Automobile vs. Shenyang Huitian Thermal | Sinomach Automobile vs. Chengtun Mining Group |
| Cloud Live vs. Easyhome New Retail | Cloud Live vs. Senci Electric Machinery | Cloud Live vs. Guangzhou KDT Machinery | Cloud Live vs. Shaanxi Meineng Clean |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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