Correlation Between Sinomach Automobile and Aluminum Corp
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinomach Automobile Co and Aluminum Corp of, you can compare the effects of market volatilities on Sinomach Automobile and Aluminum Corp 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 Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Aluminum Corp.
Diversification Opportunities for Sinomach Automobile and Aluminum Corp
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomach and Aluminum is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp 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 Aluminum Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum Corp has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Aluminum Corp go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Aluminum Corp
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 1.05 times more return on investment than Aluminum Corp. However, Sinomach Automobile is 1.05 times more volatile than Aluminum Corp of. It trades about 0.06 of its potential returns per unit of risk. Aluminum Corp of is currently generating about -0.04 per unit of risk. If you would invest 641.00 in Sinomach Automobile Co on August 31, 2024 and sell it today you would earn a total of 14.00 from holding Sinomach Automobile Co or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Aluminum Corp of
Performance |
| Timeline |
| Sinomach Automobile |
| Aluminum Corp |
Sinomach Automobile and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Aluminum Corp
The main advantage of trading using opposite Sinomach Automobile and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Aluminum Corp 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 Aluminum Corp will offset losses from the drop in Aluminum Corp's 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 |
| Aluminum Corp vs. Dr Peng Telecom | Aluminum Corp vs. Shandong Polymer Biochemicals | Aluminum Corp vs. Sunwave Communications Co | Aluminum Corp 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |