Correlation Between Hunan Mendale and Sinomach General
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Sinomach General Machinery, you can compare the effects of market volatilities on Hunan Mendale 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 Hunan Mendale with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Sinomach General.
Diversification Opportunities for Hunan Mendale and Sinomach General
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Sinomach is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile 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 Hunan Mendale 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 Hunan Mendale Hometextile 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 Hunan Mendale i.e., Hunan Mendale and Sinomach General go up and down completely randomly.
Pair Corralation between Hunan Mendale and Sinomach General
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to under-perform the Sinomach General. In addition to that, Hunan Mendale is 1.0 times more volatile than Sinomach General Machinery. It trades about 0.0 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 1,240 in Sinomach General Machinery on September 13, 2024 and sell it today you would earn a total of 450.00 from holding Sinomach General Machinery or generate 36.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Sinomach General Machinery
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Sinomach General Mac |
Hunan Mendale and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Sinomach General
The main advantage of trading using opposite Hunan Mendale and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale 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.| Hunan Mendale vs. Nanjing Putian Telecommunications | Hunan Mendale vs. Tianjin Realty Development | Hunan Mendale vs. Kangyue Technology Co | Hunan Mendale vs. Shenzhen Hifuture Electric |
| Sinomach General vs. PetroChina Co Ltd | Sinomach General vs. China Mobile Limited | Sinomach General vs. CNOOC Limited | Sinomach General vs. Ping An Insurance |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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