Correlation Between China Construction and Sinomach Automobile
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By analyzing existing cross correlation between China Construction Bank and Sinomach Automobile Co, you can compare the effects of market volatilities on China Construction 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 China Construction with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Construction and Sinomach Automobile.
Diversification Opportunities for China Construction and Sinomach Automobile
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Sinomach is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding China Construction Bank and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and China Construction 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 China Construction Bank 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 China Construction i.e., China Construction and Sinomach Automobile go up and down completely randomly.
Pair Corralation between China Construction and Sinomach Automobile
Assuming the 90 days trading horizon China Construction is expected to generate 7.62 times less return on investment than Sinomach Automobile. In addition to that, China Construction is 1.0 times more volatile than Sinomach Automobile Co. It trades about 0.03 of its total potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.23 per unit of volatility. If you would invest 638.00 in Sinomach Automobile Co on November 27, 2024 and sell it today you would earn a total of 28.00 from holding Sinomach Automobile Co or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Construction Bank vs. Sinomach Automobile Co
Performance |
| Timeline |
| China Construction Bank |
| Sinomach Automobile |
China Construction and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Construction and Sinomach Automobile
The main advantage of trading using opposite China Construction and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Construction 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.| China Construction vs. Innovative Medical Management | China Construction vs. Changjiang Publishing Media | China Construction vs. Duzhe Publishing Media | China Construction vs. Huaxia Fund Management |
| Sinomach Automobile vs. Ningbo Jintian Copper | Sinomach Automobile vs. Zhengzhou Coal Mining | Sinomach Automobile vs. Shanghai Yanpu Metal | Sinomach Automobile vs. Jiangxi Copper Co |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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