Correlation Between Sinomach Automobile and Changchun Faway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinomach Automobile Co and Changchun Faway Automobile, you can compare the effects of market volatilities on Sinomach Automobile and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Changchun Faway.
Diversification Opportunities for Sinomach Automobile and Changchun Faway
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Changchun is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Changchun Faway go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Changchun Faway
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 1.76 times less return on investment than Changchun Faway. But when comparing it to its historical volatility, Sinomach Automobile Co is 1.09 times less risky than Changchun Faway. It trades about 0.11 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 890.00 in Changchun Faway Automobile on August 25, 2024 and sell it today you would earn a total of 85.00 from holding Changchun Faway Automobile or generate 9.55% 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. Changchun Faway Automobile
Performance |
| Timeline |
| Sinomach Automobile |
| Changchun Faway Auto |
Sinomach Automobile and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Changchun Faway
The main advantage of trading using opposite Sinomach Automobile and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| Sinomach Automobile vs. Dhc Software Co | Sinomach Automobile vs. AVIC Fund Management | Sinomach Automobile vs. Holitech Technology Co | Sinomach Automobile vs. CICC Fund Management |
| Changchun Faway vs. Shenzhen Zhongzhuang Construction | Changchun Faway vs. Kuangda Technology Group | Changchun Faway vs. Glodon Software Co | Changchun Faway vs. Hubei Forbon 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |