Correlation Between Sinomach Automobile and Anhui Huilong
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By analyzing existing cross correlation between Sinomach Automobile Co and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Sinomach Automobile and Anhui Huilong 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 Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Anhui Huilong.
Diversification Opportunities for Sinomach Automobile and Anhui Huilong
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomach and Anhui is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu 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 Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Anhui Huilong go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Anhui Huilong
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 18.12 times less return on investment than Anhui Huilong. But when comparing it to its historical volatility, Sinomach Automobile Co is 2.65 times less risky than Anhui Huilong. It trades about 0.01 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 600.00 in Anhui Huilong Agricultural on September 13, 2024 and sell it today you would earn a total of 38.00 from holding Anhui Huilong Agricultural or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Sinomach Automobile |
| Anhui Huilong Agricu |
Sinomach Automobile and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Anhui Huilong
The main advantage of trading using opposite Sinomach Automobile and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Anhui Huilong 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 Anhui Huilong will offset losses from the drop in Anhui Huilong's long position.| Sinomach Automobile vs. Kweichow Moutai Co | Sinomach Automobile vs. Contemporary Amperex Technology | Sinomach Automobile vs. G bits Network Technology | Sinomach Automobile vs. BYD Co Ltd |
| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong vs. Shandong Gold Mining |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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