Correlation Between Shenzhen Transsion and CIMC Vehicles
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By analyzing existing cross correlation between Shenzhen Transsion Holdings and CIMC Vehicles Co, you can compare the effects of market volatilities on Shenzhen Transsion 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 Shenzhen Transsion with a short position of CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Transsion and CIMC Vehicles.
Diversification Opportunities for Shenzhen Transsion and CIMC Vehicles
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and CIMC is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Transsion Holdings and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles and Shenzhen Transsion 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 Shenzhen Transsion Holdings 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 Shenzhen Transsion i.e., Shenzhen Transsion and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Shenzhen Transsion and CIMC Vehicles
Assuming the 90 days trading horizon Shenzhen Transsion Holdings is expected to under-perform the CIMC Vehicles. In addition to that, Shenzhen Transsion is 1.3 times more volatile than CIMC Vehicles Co. It trades about -0.01 of its total potential returns per unit of risk. CIMC Vehicles Co is currently generating about 0.0 per unit of volatility. If you would invest 1,172 in CIMC Vehicles Co on August 31, 2024 and sell it today you would lose (186.00) from holding CIMC Vehicles Co or give up 15.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Transsion Holdings vs. CIMC Vehicles Co
Performance |
| Timeline |
| Shenzhen Transsion |
| CIMC Vehicles |
Shenzhen Transsion and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Transsion and CIMC Vehicles
The main advantage of trading using opposite Shenzhen Transsion and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Transsion 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.| Shenzhen Transsion vs. By health | Shenzhen Transsion vs. Shanghai Jinfeng Wine | Shenzhen Transsion vs. Citic Guoan Wine | Shenzhen Transsion vs. Sichuan Jinshi Technology |
| CIMC Vehicles vs. Lander Sports Development | CIMC Vehicles vs. Caihong Display Devices | CIMC Vehicles vs. Everdisplay Optronics Shanghai | CIMC Vehicles vs. Olympic Circuit Technology |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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