Correlation Between Sinomach Automobile and Shantou Wanshun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinomach Automobile Co and Shantou Wanshun Package, you can compare the effects of market volatilities on Sinomach Automobile and Shantou Wanshun 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 Shantou Wanshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Shantou Wanshun.
Diversification Opportunities for Sinomach Automobile and Shantou Wanshun
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinomach and Shantou is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Shantou Wanshun Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantou Wanshun Package 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 Shantou Wanshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantou Wanshun Package has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Shantou Wanshun go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Shantou Wanshun
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 3.38 times less return on investment than Shantou Wanshun. But when comparing it to its historical volatility, Sinomach Automobile Co is 1.39 times less risky than Shantou Wanshun. It trades about 0.03 of its potential returns per unit of risk. Shantou Wanshun Package is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 381.00 in Shantou Wanshun Package on October 18, 2024 and sell it today you would earn a total of 83.00 from holding Shantou Wanshun Package or generate 21.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Shantou Wanshun Package
Performance |
| Timeline |
| Sinomach Automobile |
| Shantou Wanshun Package |
Sinomach Automobile and Shantou Wanshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Shantou Wanshun
The main advantage of trading using opposite Sinomach Automobile and Shantou Wanshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Shantou Wanshun 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 Shantou Wanshun will offset losses from the drop in Shantou Wanshun's long position.The idea behind Sinomach Automobile Co and Shantou Wanshun Package pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Shantou Wanshun vs. China Mobile Limited | Shantou Wanshun vs. Tongyu Communication | Shantou Wanshun vs. Fibocom Wireless | Shantou Wanshun vs. Sinomach Automobile Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |