Correlation Between CIMC Vehicles and Sunwoda Electronic
Specify exactly 2 symbols:
By analyzing existing cross correlation between CIMC Vehicles Co and Sunwoda Electronic, you can compare the effects of market volatilities on CIMC Vehicles and Sunwoda Electronic 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 CIMC Vehicles with a short position of Sunwoda Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Sunwoda Electronic.
Diversification Opportunities for CIMC Vehicles and Sunwoda Electronic
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CIMC and Sunwoda is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Sunwoda Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwoda Electronic and CIMC Vehicles 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 CIMC Vehicles Co are associated (or correlated) with Sunwoda Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwoda Electronic has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Sunwoda Electronic go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Sunwoda Electronic
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to under-perform the Sunwoda Electronic. But the stock apears to be less risky and, when comparing its historical volatility, CIMC Vehicles Co is 1.33 times less risky than Sunwoda Electronic. The stock trades about -0.08 of its potential returns per unit of risk. The Sunwoda Electronic is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,327 in Sunwoda Electronic on September 26, 2024 and sell it today you would lose (27.00) from holding Sunwoda Electronic or give up 1.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CIMC Vehicles Co vs. Sunwoda Electronic
Performance |
Timeline |
CIMC Vehicles |
Sunwoda Electronic |
CIMC Vehicles and Sunwoda Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CIMC Vehicles and Sunwoda Electronic
The main advantage of trading using opposite CIMC Vehicles and Sunwoda Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Sunwoda Electronic 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 Sunwoda Electronic will offset losses from the drop in Sunwoda Electronic's long position.CIMC Vehicles vs. Industrial and Commercial | CIMC Vehicles vs. Agricultural Bank of | CIMC Vehicles vs. China Construction Bank | CIMC Vehicles vs. Bank of China |
Sunwoda Electronic vs. Songz Automobile Air | Sunwoda Electronic vs. Xiangpiaopiao Food Co | Sunwoda Electronic vs. Nanjing Putian Telecommunications | Sunwoda Electronic vs. Yankershop Food 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |