Correlation Between Suofeiya Home and Sinomach General
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By analyzing existing cross correlation between Suofeiya Home Collection and Sinomach General Machinery, you can compare the effects of market volatilities on Suofeiya Home 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 Suofeiya Home with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suofeiya Home and Sinomach General.
Diversification Opportunities for Suofeiya Home and Sinomach General
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suofeiya and Sinomach is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Suofeiya Home Collection 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 Suofeiya Home 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 Suofeiya Home Collection 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 Suofeiya Home i.e., Suofeiya Home and Sinomach General go up and down completely randomly.
Pair Corralation between Suofeiya Home and Sinomach General
Assuming the 90 days trading horizon Suofeiya Home Collection is expected to under-perform the Sinomach General. But the stock apears to be less risky and, when comparing its historical volatility, Suofeiya Home Collection is 1.2 times less risky than Sinomach General. The stock trades about -0.16 of its potential returns per unit of risk. The Sinomach General Machinery is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,701 in Sinomach General Machinery on October 26, 2024 and sell it today you would lose (184.00) from holding Sinomach General Machinery or give up 10.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suofeiya Home Collection vs. Sinomach General Machinery
Performance |
| Timeline |
| Suofeiya Home Collection |
| Sinomach General Mac |
Suofeiya Home and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suofeiya Home and Sinomach General
The main advantage of trading using opposite Suofeiya Home and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suofeiya Home 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.| Suofeiya Home vs. Hubei Xingfa Chemicals | Suofeiya Home vs. Miracll Chemicals Co | Suofeiya Home vs. Shuhua Sports Co | Suofeiya Home vs. Do Fluoride Chemicals Co |
| Sinomach General vs. Ming Yang Smart | Sinomach General vs. 159681 | Sinomach General vs. 159005 | Sinomach General vs. Loctek Ergonomic 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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