Correlation Between Beijing Seeyon and CIMC Vehicles
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By analyzing existing cross correlation between Beijing Seeyon Internet and CIMC Vehicles Co, you can compare the effects of market volatilities on Beijing Seeyon 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 Beijing Seeyon with a short position of CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Seeyon and CIMC Vehicles.
Diversification Opportunities for Beijing Seeyon and CIMC Vehicles
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and CIMC is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Seeyon Internet and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles and Beijing Seeyon 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 Beijing Seeyon Internet 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 Beijing Seeyon i.e., Beijing Seeyon and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Beijing Seeyon and CIMC Vehicles
Assuming the 90 days trading horizon Beijing Seeyon Internet is expected to generate 3.92 times more return on investment than CIMC Vehicles. However, Beijing Seeyon is 3.92 times more volatile than CIMC Vehicles Co. It trades about 0.48 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about 0.23 per unit of risk. If you would invest 1,700 in Beijing Seeyon Internet on November 5, 2024 and sell it today you would earn a total of 664.00 from holding Beijing Seeyon Internet or generate 39.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Seeyon Internet vs. CIMC Vehicles Co
Performance |
| Timeline |
| Beijing Seeyon Internet |
| CIMC Vehicles |
Beijing Seeyon and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Seeyon and CIMC Vehicles
The main advantage of trading using opposite Beijing Seeyon and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Seeyon 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.| Beijing Seeyon vs. Industrial and Commercial | Beijing Seeyon vs. China Construction Bank | Beijing Seeyon vs. Agricultural Bank of | Beijing Seeyon vs. Bank of China |
| CIMC Vehicles vs. Montage Technology Co | CIMC Vehicles vs. Eastern Air Logistics | CIMC Vehicles vs. Maxvision Technology Corp | CIMC Vehicles vs. Smartgiant Technology 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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