Correlation Between Sunny Loan and Sinomach Automobile
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By analyzing existing cross correlation between Sunny Loan Top and Sinomach Automobile Co, you can compare the effects of market volatilities on Sunny Loan 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 Sunny Loan with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Sinomach Automobile.
Diversification Opportunities for Sunny Loan and Sinomach Automobile
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sunny and Sinomach is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Sunny Loan 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 Sunny Loan Top 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 Sunny Loan i.e., Sunny Loan and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Sunny Loan and Sinomach Automobile
Assuming the 90 days trading horizon Sunny Loan Top is expected to generate 1.11 times more return on investment than Sinomach Automobile. However, Sunny Loan is 1.11 times more volatile than Sinomach Automobile Co. It trades about 0.06 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about -0.02 per unit of risk. If you would invest 612.00 in Sunny Loan Top on August 31, 2024 and sell it today you would earn a total of 403.00 from holding Sunny Loan Top or generate 65.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Sunny Loan Top vs. Sinomach Automobile Co
Performance |
| Timeline |
| Sunny Loan Top |
| Sinomach Automobile |
Sunny Loan and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Sinomach Automobile
The main advantage of trading using opposite Sunny Loan and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan 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.| Sunny Loan vs. Xizi Clean Energy | Sunny Loan vs. Blue Sail Medical | Sunny Loan vs. Harbin Air Conditioning | Sunny Loan vs. Qingdao Haier Biomedical |
| Sinomach Automobile vs. China State Construction | Sinomach Automobile vs. China Merchants Shekou | Sinomach Automobile vs. Huafa Industrial Co | Sinomach Automobile vs. China International Capital |
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 CEOs Directory module to screen CEOs from public companies around the world.
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