Correlation Between Sinomach Automobile and Changchun Engley
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By analyzing existing cross correlation between Sinomach Automobile Co and Changchun Engley Automobile, you can compare the effects of market volatilities on Sinomach Automobile and Changchun Engley 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 Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Changchun Engley.
Diversification Opportunities for Sinomach Automobile and Changchun Engley
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomach and Changchun is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Changchun Engley go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Changchun Engley
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 0.96 times more return on investment than Changchun Engley. However, Sinomach Automobile Co is 1.05 times less risky than Changchun Engley. It trades about -0.01 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about -0.03 per unit of risk. If you would invest 753.00 in Sinomach Automobile Co on October 20, 2024 and sell it today you would lose (135.00) from holding Sinomach Automobile Co or give up 17.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Changchun Engley Automobile
Performance |
| Timeline |
| Sinomach Automobile |
| Changchun Engley Aut |
Sinomach Automobile and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Changchun Engley
The main advantage of trading using opposite Sinomach Automobile and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Changchun Engley 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 Engley will offset losses from the drop in Changchun Engley'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 |
| Changchun Engley vs. Industrial and Commercial | Changchun Engley vs. Agricultural Bank of | Changchun Engley vs. China Construction Bank | Changchun Engley vs. Bank of China |
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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