Correlation Between Sinomach Automobile and Songz Automobile
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By analyzing existing cross correlation between Sinomach Automobile Co and Songz Automobile Air, you can compare the effects of market volatilities on Sinomach Automobile and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Songz Automobile.
Diversification Opportunities for Sinomach Automobile and Songz Automobile
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Songz is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Songz Automobile go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Songz Automobile
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Songz Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach Automobile Co is 1.18 times less risky than Songz Automobile. The stock trades about -0.04 of its potential returns per unit of risk. The Songz Automobile Air is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 651.00 in Songz Automobile Air on August 29, 2024 and sell it today you would earn a total of 48.00 from holding Songz Automobile Air or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Songz Automobile Air
Performance |
| Timeline |
| Sinomach Automobile |
| Songz Automobile Air |
Sinomach Automobile and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Songz Automobile
The main advantage of trading using opposite Sinomach Automobile and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's long position.| Sinomach Automobile vs. Citic Guoan Wine | Sinomach Automobile vs. Milkyway Chemical Supply | Sinomach Automobile vs. Easyhome New Retail | Sinomach Automobile vs. Sunny Loan Top |
| Songz Automobile vs. Loongson Technology Corp | Songz Automobile vs. Chongqing Road Bridge | Songz Automobile vs. Shenzhen Fortune Trend | Songz Automobile vs. Wuhan Xianglong Power |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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