Correlation Between XCMG Construction and Sinomach General
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By analyzing existing cross correlation between XCMG Construction Machinery and Sinomach General Machinery, you can compare the effects of market volatilities on XCMG Construction and Sinomach General 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 XCMG Construction with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of XCMG Construction and Sinomach General.
Diversification Opportunities for XCMG Construction and Sinomach General
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XCMG and Sinomach is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding XCMG Construction Machinery and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac and XCMG Construction 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 XCMG Construction Machinery are associated (or correlated) with Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of XCMG Construction i.e., XCMG Construction and Sinomach General go up and down completely randomly.
Pair Corralation between XCMG Construction and Sinomach General
Assuming the 90 days trading horizon XCMG Construction Machinery is expected to generate 1.33 times more return on investment than Sinomach General. However, XCMG Construction is 1.33 times more volatile than Sinomach General Machinery. It trades about 0.43 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.05 per unit of risk. If you would invest 764.00 in XCMG Construction Machinery on November 27, 2024 and sell it today you would earn a total of 99.00 from holding XCMG Construction Machinery or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XCMG Construction Machinery vs. Sinomach General Machinery
Performance |
| Timeline |
| XCMG Construction |
| Sinomach General Mac |
XCMG Construction and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XCMG Construction and Sinomach General
The main advantage of trading using opposite XCMG Construction and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XCMG Construction position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| XCMG Construction vs. Jiangsu Yanghe Brewery | XCMG Construction vs. Beijing Yanjing Brewery | XCMG Construction vs. Wasu Media Holding | XCMG Construction vs. Chengdu B ray Media |
| Sinomach General vs. Kuang Chi Technologies | Sinomach General vs. Liaoning Dingjide Petrochemical | Sinomach General vs. HanS Laser Tech | Sinomach General vs. Daoming OpticsChemical 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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