Correlation Between Sinomach Automobile and Zhuzhou Feilu
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By analyzing existing cross correlation between Sinomach Automobile Co and Zhuzhou Feilu High Tech, you can compare the effects of market volatilities on Sinomach Automobile and Zhuzhou Feilu 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 Zhuzhou Feilu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Zhuzhou Feilu.
Diversification Opportunities for Sinomach Automobile and Zhuzhou Feilu
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Zhuzhou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Zhuzhou Feilu High Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Feilu High 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 Zhuzhou Feilu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Feilu High has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Zhuzhou Feilu go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Zhuzhou Feilu
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 1.31 times less return on investment than Zhuzhou Feilu. But when comparing it to its historical volatility, Sinomach Automobile Co is 1.37 times less risky than Zhuzhou Feilu. It trades about 0.17 of its potential returns per unit of risk. Zhuzhou Feilu High Tech is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 674.00 in Zhuzhou Feilu High Tech on September 4, 2024 and sell it today you would earn a total of 60.00 from holding Zhuzhou Feilu High Tech or generate 8.9% 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. Zhuzhou Feilu High Tech
Performance |
| Timeline |
| Sinomach Automobile |
| Zhuzhou Feilu High |
Sinomach Automobile and Zhuzhou Feilu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Zhuzhou Feilu
The main advantage of trading using opposite Sinomach Automobile and Zhuzhou Feilu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Zhuzhou Feilu 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 Zhuzhou Feilu will offset losses from the drop in Zhuzhou Feilu's long position.| Sinomach Automobile vs. Guangdong Jingyi Metal | Sinomach Automobile vs. Gem Year Industrial Co | Sinomach Automobile vs. Ye Chiu Metal | Sinomach Automobile vs. Shenyang Huitian Thermal |
| Zhuzhou Feilu vs. Holitech Technology Co | Zhuzhou Feilu vs. Meinian Onehealth Healthcare | Zhuzhou Feilu vs. Humanwell Healthcare Group | Zhuzhou Feilu vs. Tianshui Huatian Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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