Correlation Between Beijing Shunxin and Sinomach General
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Shunxin Agriculture and Sinomach General Machinery, you can compare the effects of market volatilities on Beijing Shunxin 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 Beijing Shunxin with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shunxin and Sinomach General.
Diversification Opportunities for Beijing Shunxin and Sinomach General
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Sinomach is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shunxin Agriculture 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 Beijing Shunxin 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 Beijing Shunxin Agriculture 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 Beijing Shunxin i.e., Beijing Shunxin and Sinomach General go up and down completely randomly.
Pair Corralation between Beijing Shunxin and Sinomach General
Assuming the 90 days trading horizon Beijing Shunxin Agriculture is expected to under-perform the Sinomach General. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Shunxin Agriculture is 1.06 times less risky than Sinomach General. The stock trades about -0.13 of its potential returns per unit of risk. The Sinomach General Machinery is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,659 in Sinomach General Machinery on October 30, 2024 and sell it today you would lose (148.00) from holding Sinomach General Machinery or give up 8.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Shunxin Agriculture vs. Sinomach General Machinery
Performance |
| Timeline |
| Beijing Shunxin Agri |
| Sinomach General Mac |
Beijing Shunxin and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Shunxin and Sinomach General
The main advantage of trading using opposite Beijing Shunxin and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shunxin 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.| Beijing Shunxin vs. Everdisplay Optronics Shanghai | Beijing Shunxin vs. Shenwu Energy Saving | Beijing Shunxin vs. Guangzhou Dongfang Hotel | Beijing Shunxin vs. Sportsoul Co Ltd |
| Sinomach General vs. Fuzhou Rockchip Electronics | Sinomach General vs. Dongnan Electronics Co | Sinomach General vs. Montage Technology Co | Sinomach General vs. YiDong Electronics Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |