Correlation Between Sinomach Automobile and China Sports
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By analyzing existing cross correlation between Sinomach Automobile Co and China Sports Industry, you can compare the effects of market volatilities on Sinomach Automobile and China Sports 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 Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and China Sports.
Diversification Opportunities for Sinomach Automobile and China Sports
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and China is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry 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 Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and China Sports go up and down completely randomly.
Pair Corralation between Sinomach Automobile and China Sports
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the China Sports. In addition to that, Sinomach Automobile is 1.39 times more volatile than China Sports Industry. It trades about 0.0 of its total potential returns per unit of risk. China Sports Industry is currently generating about 0.01 per unit of volatility. If you would invest 846.00 in China Sports Industry on August 31, 2024 and sell it today you would lose (5.00) from holding China Sports Industry or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Sinomach Automobile Co vs. China Sports Industry
Performance |
| Timeline |
| Sinomach Automobile |
| China Sports Industry |
Sinomach Automobile and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and China Sports
The main advantage of trading using opposite Sinomach Automobile and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, China Sports 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 Sports will offset losses from the drop in China Sports' long position.| Sinomach Automobile vs. China State Construction | Sinomach Automobile vs. China Merchants Shekou | Sinomach Automobile vs. Huafa Industrial Co | Sinomach Automobile vs. China International Capital |
| China Sports vs. Kweichow Moutai Co | China Sports vs. Contemporary Amperex Technology | China Sports vs. G bits Network Technology | China Sports vs. BYD Co Ltd |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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