Correlation Between Sinomach Automobile and Keda Clean
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By analyzing existing cross correlation between Sinomach Automobile Co and Keda Clean Energy, you can compare the effects of market volatilities on Sinomach Automobile and Keda Clean 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 Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Keda Clean.
Diversification Opportunities for Sinomach Automobile and Keda Clean
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Keda is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Keda Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keda Clean Energy 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 Keda Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keda Clean Energy has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Keda Clean go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Keda Clean
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 1.5 times more return on investment than Keda Clean. However, Sinomach Automobile is 1.5 times more volatile than Keda Clean Energy. It trades about 0.0 of its potential returns per unit of risk. Keda Clean Energy is currently generating about -0.04 per unit of risk. If you would invest 822.00 in Sinomach Automobile Co on September 12, 2024 and sell it today you would lose (147.00) from holding Sinomach Automobile Co or give up 17.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Keda Clean Energy
Performance |
| Timeline |
| Sinomach Automobile |
| Keda Clean Energy |
Sinomach Automobile and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Keda Clean
The main advantage of trading using opposite Sinomach Automobile and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Keda Clean 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 Keda Clean will offset losses from the drop in Keda Clean's long position.| Sinomach Automobile vs. Lutian Machinery Co | Sinomach Automobile vs. PetroChina Co Ltd | Sinomach Automobile vs. Bank of China | Sinomach Automobile vs. Gansu Jiu Steel |
| Keda Clean vs. Eastern Communications Co | Keda Clean vs. Zhongtong Guomai Communication | Keda Clean vs. China Railway Construction | Keda Clean vs. Sinomach Automobile Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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