Correlation Between Sinomach Automobile and Anhui Huaheng
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By analyzing existing cross correlation between Sinomach Automobile Co and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Sinomach Automobile and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Anhui Huaheng.
Diversification Opportunities for Sinomach Automobile and Anhui Huaheng
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Anhui is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Anhui Huaheng
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 1.54 times more return on investment than Anhui Huaheng. However, Sinomach Automobile is 1.54 times more volatile than Anhui Huaheng Biotechnology. It trades about -0.13 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.58 per unit of risk. If you would invest 672.00 in Sinomach Automobile Co on October 17, 2024 and sell it today you would lose (66.00) from holding Sinomach Automobile Co or give up 9.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Sinomach Automobile |
| Anhui Huaheng Biotec |
Sinomach Automobile and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Anhui Huaheng
The main advantage of trading using opposite Sinomach Automobile and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Sinomach Automobile vs. GRINM Semiconductor Materials | Sinomach Automobile vs. Western Metal Materials | Sinomach Automobile vs. Tibet Huayu Mining | Sinomach Automobile vs. Shanghai V Test Semiconductor |
| Anhui Huaheng vs. Dongfeng Automobile Co | Anhui Huaheng vs. Chongqing Changan Automobile | Anhui Huaheng vs. Songz Automobile Air | Anhui Huaheng 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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