Correlation Between Anhui Jianghuai and Sinomach Automobile
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Sinomach Automobile Co, you can compare the effects of market volatilities on Anhui Jianghuai and Sinomach Automobile 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 Anhui Jianghuai with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Sinomach Automobile.
Diversification Opportunities for Anhui Jianghuai and Sinomach Automobile
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Sinomach is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Anhui Jianghuai 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 Anhui Jianghuai Automobile are associated (or correlated) with Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Sinomach Automobile
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to under-perform the Sinomach Automobile. In addition to that, Anhui Jianghuai is 2.28 times more volatile than Sinomach Automobile Co. It trades about -0.13 of its total potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.07 per unit of volatility. If you would invest 642.00 in Sinomach Automobile Co on September 1, 2024 and sell it today you would earn a total of 19.00 from holding Sinomach Automobile Co or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Sinomach Automobile Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Sinomach Automobile |
Anhui Jianghuai and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Sinomach Automobile
The main advantage of trading using opposite Anhui Jianghuai and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Emdoor Information Co | Anhui Jianghuai vs. Longmaster Information Tech | Anhui Jianghuai vs. Jiangsu Jinling Sports |
| Sinomach Automobile vs. Ming Yang Smart | Sinomach Automobile vs. 159681 | Sinomach Automobile vs. 159005 | Sinomach Automobile vs. Loctek Ergonomic Technology |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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