Correlation Between Sinomach Automobile and Guangzhou Haige
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By analyzing existing cross correlation between Sinomach Automobile Co and Guangzhou Haige Communications, you can compare the effects of market volatilities on Sinomach Automobile and Guangzhou Haige 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 Sinomach Automobile with a short position of Guangzhou Haige. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Guangzhou Haige.
Diversification Opportunities for Sinomach Automobile and Guangzhou Haige
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Guangzhou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Guangzhou Haige Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haige Comm and Sinomach 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 Sinomach Automobile Co are associated (or correlated) with Guangzhou Haige. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haige Comm has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Guangzhou Haige go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Guangzhou Haige
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Guangzhou Haige. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach Automobile Co is 1.35 times less risky than Guangzhou Haige. The stock trades about -0.02 of its potential returns per unit of risk. The Guangzhou Haige Communications is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,140 in Guangzhou Haige Communications on September 8, 2024 and sell it today you would earn a total of 133.00 from holding Guangzhou Haige Communications or generate 11.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Sinomach Automobile Co vs. Guangzhou Haige Communications
Performance |
Timeline |
Sinomach Automobile |
Guangzhou Haige Comm |
Sinomach Automobile and Guangzhou Haige Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinomach Automobile and Guangzhou Haige
The main advantage of trading using opposite Sinomach Automobile and Guangzhou Haige positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Guangzhou Haige 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 Guangzhou Haige will offset losses from the drop in Guangzhou Haige's long position.Sinomach Automobile vs. DO Home Collection | Sinomach Automobile vs. Allgens Medical Technology | Sinomach Automobile vs. Zhongshan Public Utilities | Sinomach Automobile vs. Qumei Furniture Group |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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