Correlation Between Sany Heavy and Sinomach General
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By analyzing existing cross correlation between Sany Heavy Industry and Sinomach General Machinery, you can compare the effects of market volatilities on Sany Heavy 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 Sany Heavy with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sany Heavy and Sinomach General.
Diversification Opportunities for Sany Heavy and Sinomach General
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sany and Sinomach is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sany Heavy Industry 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 Sany Heavy 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 Sany Heavy Industry 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 Sany Heavy i.e., Sany Heavy and Sinomach General go up and down completely randomly.
Pair Corralation between Sany Heavy and Sinomach General
Assuming the 90 days trading horizon Sany Heavy Industry is expected to under-perform the Sinomach General. But the stock apears to be less risky and, when comparing its historical volatility, Sany Heavy Industry is 3.04 times less risky than Sinomach General. The stock trades about -0.25 of its potential returns per unit of risk. The Sinomach General Machinery is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,550 in Sinomach General Machinery on September 2, 2024 and sell it today you would earn a total of 109.00 from holding Sinomach General Machinery or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sany Heavy Industry vs. Sinomach General Machinery
Performance |
| Timeline |
| Sany Heavy Industry |
| Sinomach General Mac |
Sany Heavy and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sany Heavy and Sinomach General
The main advantage of trading using opposite Sany Heavy and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sany Heavy 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.| Sany Heavy vs. Dymatic Chemicals | Sany Heavy vs. Shenyang Chemical Industry | Sany Heavy vs. Yangmei Chemical Co | Sany Heavy vs. Shandong Mining Machinery |
| Sinomach General vs. ChengDu Hi Tech Development | Sinomach General vs. Tibet Huayu Mining | Sinomach General vs. Zhejiang JIULI Hi tech | Sinomach General vs. Shandong Mining Machinery |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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