Correlation Between Sinomach Automobile and Beken Corp
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By analyzing existing cross correlation between Sinomach Automobile Co and Beken Corp, you can compare the effects of market volatilities on Sinomach Automobile and Beken 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 Beken Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Beken Corp.
Diversification Opportunities for Sinomach Automobile and Beken Corp
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomach and Beken is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Beken Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beken 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 Beken Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beken Corp has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Beken Corp go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Beken Corp
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 6.78 times less return on investment than Beken Corp. But when comparing it to its historical volatility, Sinomach Automobile Co is 1.0 times less risky than Beken Corp. It trades about 0.0 of its potential returns per unit of risk. Beken Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,922 in Beken Corp on September 26, 2024 and sell it today you would earn a total of 173.00 from holding Beken Corp or generate 5.92% 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. Beken Corp
Performance |
| Timeline |
| Sinomach Automobile |
| Beken Corp |
Sinomach Automobile and Beken Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Beken Corp
The main advantage of trading using opposite Sinomach Automobile and Beken Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Beken 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 Beken Corp will offset losses from the drop in Beken Corp's long position.| Sinomach Automobile vs. Biwin Storage Technology | Sinomach Automobile vs. PetroChina Co Ltd | Sinomach Automobile vs. Industrial and Commercial | Sinomach Automobile vs. China Construction Bank |
| Beken Corp vs. Industrial and Commercial | Beken Corp vs. China Construction Bank | Beken Corp vs. Agricultural Bank of | Beken Corp 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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