Correlation Between De Rucci and Sinomach General
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By analyzing existing cross correlation between De Rucci Healthy and Sinomach General Machinery, you can compare the effects of market volatilities on De Rucci 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 De Rucci with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Rucci and Sinomach General.
Diversification Opportunities for De Rucci and Sinomach General
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 001323 and Sinomach is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding De Rucci Healthy 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 De Rucci 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 De Rucci Healthy 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 De Rucci i.e., De Rucci and Sinomach General go up and down completely randomly.
Pair Corralation between De Rucci and Sinomach General
Assuming the 90 days trading horizon De Rucci is expected to generate 1.38 times less return on investment than Sinomach General. But when comparing it to its historical volatility, De Rucci Healthy is 1.35 times less risky than Sinomach General. It trades about 0.02 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,342 in Sinomach General Machinery on October 12, 2024 and sell it today you would earn a total of 112.00 from holding Sinomach General Machinery or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Rucci Healthy vs. Sinomach General Machinery
Performance |
| Timeline |
| De Rucci Healthy |
| Sinomach General Mac |
De Rucci and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Rucci and Sinomach General
The main advantage of trading using opposite De Rucci and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Rucci 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.| De Rucci vs. Beijing Sanyuan Foods | De Rucci vs. Jiahe Foods Industry | De Rucci vs. Shandong Sinoglory Health | De Rucci vs. Youyou Foods Co |
| Sinomach General vs. Yunnan Jianzhijia Health Chain | Sinomach General vs. Shanghai Rongtai Health | Sinomach General vs. De Rucci Healthy | Sinomach General vs. Dezhan HealthCare 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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