Correlation Between Sinomach Automobile and CIMC Vehicles
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By analyzing existing cross correlation between Sinomach Automobile Co and CIMC Vehicles Co, you can compare the effects of market volatilities on Sinomach Automobile and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and CIMC Vehicles.
Diversification Opportunities for Sinomach Automobile and CIMC Vehicles
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and CIMC is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Sinomach Automobile and CIMC Vehicles
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the CIMC Vehicles. In addition to that, Sinomach Automobile is 1.1 times more volatile than CIMC Vehicles Co. It trades about 0.0 of its total potential returns per unit of risk. CIMC Vehicles Co is currently generating about 0.03 per unit of volatility. If you would invest 802.00 in CIMC Vehicles Co on September 3, 2024 and sell it today you would earn a total of 184.00 from holding CIMC Vehicles Co or generate 22.94% 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. CIMC Vehicles Co
Performance |
| Timeline |
| Sinomach Automobile |
| CIMC Vehicles |
Sinomach Automobile and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and CIMC Vehicles
The main advantage of trading using opposite Sinomach Automobile and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Sinomach Automobile vs. PetroChina Co Ltd | Sinomach Automobile vs. China Mobile Limited | Sinomach Automobile vs. Industrial and Commercial | Sinomach Automobile vs. China Life Insurance |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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