Correlation Between Sinomach Automobile and China Asset
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinomach Automobile Co and China Asset Management, you can compare the effects of market volatilities on Sinomach Automobile and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and China Asset.
Diversification Opportunities for Sinomach Automobile and China Asset
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinomach and China is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and China Asset go up and down completely randomly.
Pair Corralation between Sinomach Automobile and China Asset
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 2.85 times more return on investment than China Asset. However, Sinomach Automobile is 2.85 times more volatile than China Asset Management. It trades about 0.08 of its potential returns per unit of risk. China Asset Management is currently generating about 0.12 per unit of risk. If you would invest 597.00 in Sinomach Automobile Co on September 26, 2024 and sell it today you would earn a total of 72.00 from holding Sinomach Automobile Co or generate 12.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sinomach Automobile Co vs. China Asset Management
Performance |
Timeline |
Sinomach Automobile |
China Asset Management |
Sinomach Automobile and China Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinomach Automobile and China Asset
The main advantage of trading using opposite Sinomach Automobile and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.Sinomach Automobile vs. Biwin Storage Technology | Sinomach Automobile vs. PetroChina Co Ltd | Sinomach Automobile vs. Industrial and Commercial | Sinomach Automobile vs. China Construction Bank |
China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |