Correlation Between Jiangsu Xinri and CIMC Vehicles
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and CIMC Vehicles Co, you can compare the effects of market volatilities on Jiangsu Xinri and CIMC Vehicles 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 Xinri with a short position of CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and CIMC Vehicles.
Diversification Opportunities for Jiangsu Xinri and CIMC Vehicles
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and CIMC is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles and Jiangsu Xinri 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 Xinri E Vehicle are associated (or correlated) with CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and CIMC Vehicles
Assuming the 90 days trading horizon Jiangsu Xinri E Vehicle is expected to under-perform the CIMC Vehicles. In addition to that, Jiangsu Xinri is 1.8 times more volatile than CIMC Vehicles Co. It trades about -0.2 of its total potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.17 per unit of volatility. If you would invest 957.00 in CIMC Vehicles Co on October 20, 2024 and sell it today you would lose (49.00) from holding CIMC Vehicles Co or give up 5.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. CIMC Vehicles Co
Performance |
| Timeline |
| Jiangsu Xinri E |
| CIMC Vehicles |
Jiangsu Xinri and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and CIMC Vehicles
The main advantage of trading using opposite Jiangsu Xinri and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Jiangsu Xinri vs. Markor International Home | Jiangsu Xinri vs. Shanghai Jinfeng Wine | Jiangsu Xinri vs. Innovative Medical Management | Jiangsu Xinri vs. Anhui Gujing Distillery |
| CIMC Vehicles vs. Aba Chemicals Corp | CIMC Vehicles vs. Haima Automobile Group | CIMC Vehicles vs. Songz Automobile Air | CIMC Vehicles vs. Tongyu Communication |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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