Correlation Between Songz Automobile and North Huajin
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By analyzing existing cross correlation between Songz Automobile Air and North Huajin Chemical, you can compare the effects of market volatilities on Songz Automobile and North Huajin 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 Songz Automobile with a short position of North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and North Huajin.
Diversification Opportunities for Songz Automobile and North Huajin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Songz and North is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical and Songz Automobile 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 Songz Automobile Air are associated (or correlated) with North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of Songz Automobile i.e., Songz Automobile and North Huajin go up and down completely randomly.
Pair Corralation between Songz Automobile and North Huajin
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 0.88 times more return on investment than North Huajin. However, Songz Automobile Air is 1.14 times less risky than North Huajin. It trades about -0.12 of its potential returns per unit of risk. North Huajin Chemical is currently generating about -0.24 per unit of risk. If you would invest 701.00 in Songz Automobile Air on September 25, 2024 and sell it today you would lose (32.00) from holding Songz Automobile Air or give up 4.56% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Songz Automobile Air vs. North Huajin Chemical
Performance |
Timeline |
Songz Automobile Air |
North Huajin Chemical |
Songz Automobile and North Huajin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Songz Automobile and North Huajin
The main advantage of trading using opposite Songz Automobile and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.Songz Automobile vs. China Life Insurance | Songz Automobile vs. Cinda Securities Co | Songz Automobile vs. Piotech Inc A | Songz Automobile vs. Dongxing Sec Co |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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