Correlation Between Jiangsu Yueda and Sinomach Automobile
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Sinomach Automobile Co, you can compare the effects of market volatilities on Jiangsu Yueda 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 Jiangsu Yueda with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Sinomach Automobile.
Diversification Opportunities for Jiangsu Yueda and Sinomach Automobile
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Sinomach is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Jiangsu Yueda 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 Jiangsu Yueda Investment 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 Jiangsu Yueda i.e., Jiangsu Yueda and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Sinomach Automobile
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 0.89 times more return on investment than Sinomach Automobile. However, Jiangsu Yueda Investment is 1.12 times less risky than Sinomach Automobile. It trades about 0.02 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about -0.03 per unit of risk. If you would invest 426.00 in Jiangsu Yueda Investment on January 26, 2025 and sell it today you would earn a total of 17.00 from holding Jiangsu Yueda Investment or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Sinomach Automobile Co
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Sinomach Automobile |
Jiangsu Yueda and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Sinomach Automobile
The main advantage of trading using opposite Jiangsu Yueda and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda 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.| Jiangsu Yueda vs. Agricultural Bank of | Jiangsu Yueda vs. Industrial and Commercial | Jiangsu Yueda vs. Bank of China | Jiangsu Yueda vs. PetroChina Co Ltd |
| Sinomach Automobile vs. Gome Telecom Equipment | Sinomach Automobile vs. Holitech Technology Co | Sinomach Automobile vs. Danhua Chemical Technology | Sinomach Automobile vs. Shenzhen CAU 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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