Correlation Between Beijing Sanyuan and Sinomach Automobile
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By analyzing existing cross correlation between Beijing Sanyuan Foods and Sinomach Automobile Co, you can compare the effects of market volatilities on Beijing Sanyuan 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 Beijing Sanyuan with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Sanyuan and Sinomach Automobile.
Diversification Opportunities for Beijing Sanyuan and Sinomach Automobile
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Sinomach is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Sanyuan Foods and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Beijing Sanyuan 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 Beijing Sanyuan Foods 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 Beijing Sanyuan i.e., Beijing Sanyuan and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Beijing Sanyuan and Sinomach Automobile
Assuming the 90 days trading horizon Beijing Sanyuan Foods is expected to under-perform the Sinomach Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Sanyuan Foods is 1.92 times less risky than Sinomach Automobile. The stock trades about -0.02 of its potential returns per unit of risk. The Sinomach Automobile Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 863.00 in Sinomach Automobile Co on August 29, 2024 and sell it today you would lose (214.00) from holding Sinomach Automobile Co or give up 24.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Sanyuan Foods vs. Sinomach Automobile Co
Performance |
| Timeline |
| Beijing Sanyuan Foods |
| Sinomach Automobile |
Beijing Sanyuan and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Sanyuan and Sinomach Automobile
The main advantage of trading using opposite Beijing Sanyuan and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Sanyuan 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.| Beijing Sanyuan vs. China Petroleum Chemical | Beijing Sanyuan vs. PetroChina Co Ltd | Beijing Sanyuan vs. China State Construction | Beijing Sanyuan vs. China Railway Group |
| Sinomach Automobile vs. Citic Guoan Wine | Sinomach Automobile vs. Milkyway Chemical Supply | Sinomach Automobile vs. Easyhome New Retail | Sinomach Automobile vs. Sunny Loan Top |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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