Correlation Between Sinomach Automobile and CITIC Metal
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By analyzing existing cross correlation between Sinomach Automobile Co and CITIC Metal Co, you can compare the effects of market volatilities on Sinomach Automobile and CITIC Metal 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 CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and CITIC Metal.
Diversification Opportunities for Sinomach Automobile and CITIC Metal
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and CITIC is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal 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 CITIC Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Metal has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and CITIC Metal go up and down completely randomly.
Pair Corralation between Sinomach Automobile and CITIC Metal
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 1.21 times more return on investment than CITIC Metal. However, Sinomach Automobile is 1.21 times more volatile than CITIC Metal Co. It trades about -0.01 of its potential returns per unit of risk. CITIC Metal Co is currently generating about -0.02 per unit of risk. If you would invest 935.00 in Sinomach Automobile Co on October 19, 2024 and sell it today you would lose (317.00) from holding Sinomach Automobile Co or give up 33.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 89.83% |
| Values | Daily Returns |
Sinomach Automobile Co vs. CITIC Metal Co
Performance |
| Timeline |
| Sinomach Automobile |
| CITIC Metal |
Sinomach Automobile and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and CITIC Metal
The main advantage of trading using opposite Sinomach Automobile and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, CITIC Metal 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 CITIC Metal will offset losses from the drop in CITIC Metal's long position.| Sinomach Automobile vs. Suzhou Douson Drilling | Sinomach Automobile vs. Shandong Longquan Pipeline | Sinomach Automobile vs. Nantong Haixing Electronics | Sinomach Automobile vs. Guangdong Qunxing Toys |
| CITIC Metal vs. Cangzhou Mingzhu Plastic | CITIC Metal vs. Shanghai Phichem Material | CITIC Metal vs. Allmed Medical Products | CITIC Metal vs. Eyebright Medical 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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