Correlation Between Sinomach Automobile and Jiangsu Xinri
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By analyzing existing cross correlation between Sinomach Automobile Co and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Sinomach Automobile and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Jiangsu Xinri.
Diversification Opportunities for Sinomach Automobile and Jiangsu Xinri
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomach and Jiangsu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Jiangsu Xinri
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 0.9 times more return on investment than Jiangsu Xinri. However, Sinomach Automobile Co is 1.11 times less risky than Jiangsu Xinri. It trades about -0.04 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.06 per unit of risk. If you would invest 664.00 in Sinomach Automobile Co on August 29, 2024 and sell it today you would lose (15.00) from holding Sinomach Automobile Co or give up 2.26% 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. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Sinomach Automobile |
| Jiangsu Xinri E |
Sinomach Automobile and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Jiangsu Xinri
The main advantage of trading using opposite Sinomach Automobile and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Sinomach Automobile vs. Citic Guoan Wine | Sinomach Automobile vs. Milkyway Chemical Supply | Sinomach Automobile vs. Easyhome New Retail | Sinomach Automobile vs. Sunny Loan Top |
| Jiangsu Xinri vs. Shenzhen MYS Environmental | Jiangsu Xinri vs. AVIC Fund Management | Jiangsu Xinri vs. Shenzhen Bingchuan Network | Jiangsu Xinri vs. Penghua Shenzhen Energy |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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