Correlation Between 159005 and Sinomach General
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By analyzing existing cross correlation between 159005 and Sinomach General Machinery, you can compare the effects of market volatilities on 159005 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 159005 with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Sinomach General.
Diversification Opportunities for 159005 and Sinomach General
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 159005 and Sinomach is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding 159005 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 159005 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 159005 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 159005 i.e., 159005 and Sinomach General go up and down completely randomly.
Pair Corralation between 159005 and Sinomach General
Assuming the 90 days trading horizon 159005 is expected to generate 37.32 times less return on investment than Sinomach General. But when comparing it to its historical volatility, 159005 is 122.72 times less risky than Sinomach General. It trades about 0.22 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,219 in Sinomach General Machinery on October 26, 2024 and sell it today you would earn a total of 298.00 from holding Sinomach General Machinery or generate 24.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Sinomach General Machinery
Performance |
| Timeline |
| 159005 |
| Sinomach General Mac |
159005 and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Sinomach General
The main advantage of trading using opposite 159005 and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 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.The idea behind 159005 and Sinomach General Machinery pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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