Correlation Between Gem Year and Sinomach Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gem Year Industrial Co and Sinomach Automobile Co, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Sinomach Automobile.
Diversification Opportunities for Gem Year and Sinomach Automobile
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gem and Sinomach is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Gem Year and Sinomach Automobile
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 1.12 times more return on investment than Sinomach Automobile. However, Gem Year is 1.12 times more volatile than Sinomach Automobile Co. It trades about 0.14 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about -0.07 per unit of risk. If you would invest 460.00 in Gem Year Industrial Co on September 12, 2024 and sell it today you would earn a total of 27.00 from holding Gem Year Industrial Co or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Sinomach Automobile Co
Performance |
| Timeline |
| Gem Year Industrial |
| Sinomach Automobile |
Gem Year and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Sinomach Automobile
The main advantage of trading using opposite Gem Year and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Agricultural Bank of | Gem Year vs. Industrial and Commercial | Gem Year vs. Bank of China | Gem Year vs. PetroChina Co Ltd |
| Sinomach Automobile vs. Lutian Machinery Co | Sinomach Automobile vs. PetroChina Co Ltd | Sinomach Automobile vs. Bank of China | Sinomach Automobile vs. Gansu Jiu Steel |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stocks Directory Find actively traded stocks across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |