Correlation Between Sinomach Automobile and Shenzhen Urban
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By analyzing existing cross correlation between Sinomach Automobile Co and Shenzhen Urban Transport, you can compare the effects of market volatilities on Sinomach Automobile and Shenzhen Urban 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 Shenzhen Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Shenzhen Urban.
Diversification Opportunities for Sinomach Automobile and Shenzhen Urban
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Shenzhen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Shenzhen Urban Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Urban Transport 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 Shenzhen Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Urban Transport has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Shenzhen Urban go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Shenzhen Urban
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 0.58 times more return on investment than Shenzhen Urban. However, Sinomach Automobile Co is 1.72 times less risky than Shenzhen Urban. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Urban Transport is currently generating about -0.19 per unit of risk. If you would invest 623.00 in Sinomach Automobile Co on November 1, 2024 and sell it today you would earn a total of 15.00 from holding Sinomach Automobile Co or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Shenzhen Urban Transport
Performance |
| Timeline |
| Sinomach Automobile |
| Shenzhen Urban Transport |
Sinomach Automobile and Shenzhen Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Shenzhen Urban
The main advantage of trading using opposite Sinomach Automobile and Shenzhen Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Shenzhen Urban 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 Shenzhen Urban will offset losses from the drop in Shenzhen Urban's long position.| Sinomach Automobile vs. Iat Automobile Technology | Sinomach Automobile vs. Hangzhou Arcvideo Technology | Sinomach Automobile vs. Guilin Seamild Foods | Sinomach Automobile vs. JuneYao Dairy Co |
| Shenzhen Urban vs. BTG Hotels Group | Shenzhen Urban vs. Sinomach Automobile Co | Shenzhen Urban vs. Bingo Software Co | Shenzhen Urban vs. Beijing Baolande Software |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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