Correlation Between Ye Chiu and Sinomach Automobile
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By analyzing existing cross correlation between Ye Chiu Metal and Sinomach Automobile Co, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Sinomach Automobile.
Diversification Opportunities for Ye Chiu and Sinomach Automobile
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 601388 and Sinomach is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Ye Chiu and Sinomach Automobile
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 1.26 times more return on investment than Sinomach Automobile. However, Ye Chiu is 1.26 times more volatile than Sinomach Automobile Co. It trades about 0.01 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 284.00 in Ye Chiu Metal on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Ye Chiu Metal or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Sinomach Automobile Co
Performance |
| Timeline |
| Ye Chiu Metal |
| Sinomach Automobile |
Ye Chiu and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Sinomach Automobile
The main advantage of trading using opposite Ye Chiu and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Rongsheng Petrochemical Co |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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