Correlation Between Goldlok Toys and Sinomach General
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By analyzing existing cross correlation between Goldlok Toys Holdings and Sinomach General Machinery, you can compare the effects of market volatilities on Goldlok Toys 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 Goldlok Toys with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldlok Toys and Sinomach General.
Diversification Opportunities for Goldlok Toys and Sinomach General
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldlok and Sinomach is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Goldlok Toys Holdings 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 Goldlok Toys 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 Goldlok Toys Holdings 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 Goldlok Toys i.e., Goldlok Toys and Sinomach General go up and down completely randomly.
Pair Corralation between Goldlok Toys and Sinomach General
Assuming the 90 days trading horizon Goldlok Toys is expected to generate 1.56 times less return on investment than Sinomach General. In addition to that, Goldlok Toys is 1.02 times more volatile than Sinomach General Machinery. It trades about 0.02 of its total potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.04 per unit of volatility. If you would invest 1,259 in Sinomach General Machinery on August 31, 2024 and sell it today you would earn a total of 400.00 from holding Sinomach General Machinery or generate 31.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Goldlok Toys Holdings vs. Sinomach General Machinery
Performance |
| Timeline |
| Goldlok Toys Holdings |
| Sinomach General Mac |
Goldlok Toys and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldlok Toys and Sinomach General
The main advantage of trading using opposite Goldlok Toys and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldlok Toys 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.| Goldlok Toys vs. China State Construction | Goldlok Toys vs. China Merchants Shekou | Goldlok Toys vs. Huafa Industrial Co | Goldlok Toys vs. China International Capital |
| Sinomach General vs. Cultural Investment Holdings | Sinomach General vs. Gome Telecom Equipment | Sinomach General vs. Bus Online Co | Sinomach General vs. Holitech Technology 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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