Correlation Between Suzhou Weizhixiang and Sinomach Automobile
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Sinomach Automobile Co, you can compare the effects of market volatilities on Suzhou Weizhixiang 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 Suzhou Weizhixiang with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Sinomach Automobile.
Diversification Opportunities for Suzhou Weizhixiang and Sinomach Automobile
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and Sinomach is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Suzhou Weizhixiang 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 Suzhou Weizhixiang Food 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 Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Sinomach Automobile
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Sinomach Automobile. In addition to that, Suzhou Weizhixiang is 1.37 times more volatile than Sinomach Automobile Co. It trades about -0.16 of its total potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.12 per unit of volatility. If you would invest 612.00 in Sinomach Automobile Co on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Sinomach Automobile Co or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Sinomach Automobile Co
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Sinomach Automobile |
Suzhou Weizhixiang and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Sinomach Automobile
The main advantage of trading using opposite Suzhou Weizhixiang and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang 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.| Suzhou Weizhixiang vs. Super Dragon Engineering Plastics | Suzhou Weizhixiang vs. GRIPM Advanced Materials | Suzhou Weizhixiang vs. Sanxiang Advanced Materials | Suzhou Weizhixiang vs. Nuode Investment Co |
| Sinomach Automobile vs. China Asset Management | Sinomach Automobile vs. Jiangsu GDK Biotechnology | Sinomach Automobile vs. Fujian Wanchen Biotechnology | Sinomach Automobile vs. Easyhome New Retail |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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