Correlation Between Sinomach Automobile and XinJiang GuoTong
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By analyzing existing cross correlation between Sinomach Automobile Co and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Sinomach Automobile and XinJiang GuoTong 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 Sinomach Automobile with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and XinJiang GuoTong.
Diversification Opportunities for Sinomach Automobile and XinJiang GuoTong
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and XinJiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Sinomach Automobile 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 Sinomach Automobile Co are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Sinomach Automobile and XinJiang GuoTong
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the XinJiang GuoTong. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach Automobile Co is 1.0 times less risky than XinJiang GuoTong. The stock trades about -0.03 of its potential returns per unit of risk. The XinJiang GuoTong Pipeline is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,061 in XinJiang GuoTong Pipeline on September 1, 2024 and sell it today you would lose (155.00) from holding XinJiang GuoTong Pipeline or give up 14.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Sinomach Automobile |
| XinJiang GuoTong Pipeline |
Sinomach Automobile and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and XinJiang GuoTong
The main advantage of trading using opposite Sinomach Automobile and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Sinomach Automobile vs. Ming Yang Smart | Sinomach Automobile vs. 159681 | Sinomach Automobile vs. 159005 | Sinomach Automobile vs. Loctek Ergonomic Technology |
| XinJiang GuoTong vs. Industrial and Commercial | XinJiang GuoTong vs. Agricultural Bank of | XinJiang GuoTong vs. China Construction Bank | XinJiang GuoTong vs. Bank of China |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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