Correlation Between CIMC Vehicles and Allison Transmission
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By analyzing existing cross correlation between CIMC Vehicles Co and Allison Transmission Holdings, you can compare the effects of market volatilities on CIMC Vehicles and Allison Transmission 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 Allison Transmission. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Allison Transmission.
Diversification Opportunities for CIMC Vehicles and Allison Transmission
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CIMC and Allison is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles Co and Allison Transmission Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allison Transmission 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 Allison Transmission. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allison Transmission has no effect on the direction of CIMC Vehicles i.e., CIMC Vehicles and Allison Transmission go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Allison Transmission
Assuming the 90 days trading horizon CIMC Vehicles Co is expected to generate 1.33 times more return on investment than Allison Transmission. However, CIMC Vehicles is 1.33 times more volatile than Allison Transmission Holdings. It trades about 0.09 of its potential returns per unit of risk. Allison Transmission Holdings is currently generating about 0.03 per unit of risk. If you would invest 916.00 in CIMC Vehicles Co on August 31, 2025 and sell it today you would earn a total of 90.00 from holding CIMC Vehicles Co or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.65% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Allison Transmission Holdings
Performance |
| Timeline |
| CIMC Vehicles |
| Allison Transmission |
CIMC Vehicles and Allison Transmission Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Allison Transmission
The main advantage of trading using opposite CIMC Vehicles and Allison Transmission positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles position performs unexpectedly, Allison Transmission 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 Allison Transmission will offset losses from the drop in Allison Transmission's long position.| CIMC Vehicles vs. CITIC Metal Co | CIMC Vehicles vs. Saurer Intelligent Technology | CIMC Vehicles vs. Dhc Software Co | CIMC Vehicles vs. Pylon Technologies Co |
| Allison Transmission vs. Veolia Environnement SA | Allison Transmission vs. Network Media Group | Allison Transmission vs. Sphere Entertainment Co | Allison Transmission vs. Tokyo Steel Manufacturing |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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