Correlation Between Sinomach Automobile and China Resources
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By analyzing existing cross correlation between Sinomach Automobile Co and China Resources Boya, you can compare the effects of market volatilities on Sinomach Automobile and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and China Resources.
Diversification Opportunities for Sinomach Automobile and China Resources
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinomach and China is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and China Resources go up and down completely randomly.
Pair Corralation between Sinomach Automobile and China Resources
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the China Resources. In addition to that, Sinomach Automobile is 1.99 times more volatile than China Resources Boya. It trades about -0.14 of its total potential returns per unit of risk. China Resources Boya is currently generating about -0.25 per unit of volatility. If you would invest 3,054 in China Resources Boya on October 22, 2024 and sell it today you would lose (154.00) from holding China Resources Boya or give up 5.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. China Resources Boya
Performance |
| Timeline |
| Sinomach Automobile |
| China Resources Boya |
Sinomach Automobile and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and China Resources
The main advantage of trading using opposite Sinomach Automobile and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| Sinomach Automobile vs. Zhongyin Babi Food | Sinomach Automobile vs. Suzhou Weizhixiang Food | Sinomach Automobile vs. Panda Dairy Corp | Sinomach Automobile vs. Chongqing Sulian Plastic |
| China Resources vs. Guangdong Qunxing Toys | China Resources vs. Sinomach Automobile Co | China Resources vs. Shenzhen MYS Environmental | China Resources vs. Xiangyang Automobile Bearing |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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