Correlation Between Sinomach Automobile and Guangdong Shenglu
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By analyzing existing cross correlation between Sinomach Automobile Co and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Sinomach Automobile and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Guangdong Shenglu.
Diversification Opportunities for Sinomach Automobile and Guangdong Shenglu
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Guangdong is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Guangdong Shenglu
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 1.01 times more return on investment than Guangdong Shenglu. However, Sinomach Automobile is 1.01 times more volatile than Guangdong Shenglu Telecommunication. It trades about 0.0 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.01 per unit of risk. If you would invest 829.00 in Sinomach Automobile Co on September 3, 2024 and sell it today you would lose (168.00) from holding Sinomach Automobile Co or give up 20.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Sinomach Automobile |
| Guangdong Shenglu |
Sinomach Automobile and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Guangdong Shenglu
The main advantage of trading using opposite Sinomach Automobile and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu'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 |
| Guangdong Shenglu vs. Agricultural Bank of | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Postal Savings Bank | Guangdong Shenglu vs. Bank of Communications |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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