Correlation Between Sinomach Automobile and CICT Mobile
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By analyzing existing cross correlation between Sinomach Automobile Co and CICT Mobile Communication, you can compare the effects of market volatilities on Sinomach Automobile and CICT Mobile 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 CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and CICT Mobile.
Diversification Opportunities for Sinomach Automobile and CICT Mobile
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and CICT is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and CICT Mobile Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CICT Mobile Communication 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 CICT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CICT Mobile Communication has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and CICT Mobile go up and down completely randomly.
Pair Corralation between Sinomach Automobile and CICT Mobile
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 0.75 times more return on investment than CICT Mobile. However, Sinomach Automobile Co is 1.34 times less risky than CICT Mobile. It trades about 0.0 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about -0.07 per unit of risk. If you would invest 664.00 in Sinomach Automobile Co on August 28, 2024 and sell it today you would lose (2.00) from holding Sinomach Automobile Co or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. CICT Mobile Communication
Performance |
| Timeline |
| Sinomach Automobile |
| CICT Mobile Communication |
Sinomach Automobile and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and CICT Mobile
The main advantage of trading using opposite Sinomach Automobile and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, CICT Mobile 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 CICT Mobile will offset losses from the drop in CICT Mobile'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 |
| CICT Mobile vs. Shenzhen MYS Environmental | CICT Mobile vs. AVIC Fund Management | CICT Mobile vs. Shenzhen Bingchuan Network | CICT Mobile 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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