Correlation Between Sinomach Automobile and Risuntek
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By analyzing existing cross correlation between Sinomach Automobile Co and Risuntek, you can compare the effects of market volatilities on Sinomach Automobile and Risuntek 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 Risuntek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Risuntek.
Diversification Opportunities for Sinomach Automobile and Risuntek
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomach and Risuntek is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Risuntek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Risuntek 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 Risuntek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Risuntek has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Risuntek go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Risuntek
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 3.66 times less return on investment than Risuntek. But when comparing it to its historical volatility, Sinomach Automobile Co is 2.79 times less risky than Risuntek. It trades about 0.16 of its potential returns per unit of risk. Risuntek is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,115 in Risuntek on September 5, 2024 and sell it today you would earn a total of 513.00 from holding Risuntek or generate 24.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Risuntek
Performance |
| Timeline |
| Sinomach Automobile |
| Risuntek |
Sinomach Automobile and Risuntek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Risuntek
The main advantage of trading using opposite Sinomach Automobile and Risuntek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Risuntek 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 Risuntek will offset losses from the drop in Risuntek's long position.| Sinomach Automobile vs. China State Construction | Sinomach Automobile vs. Poly Real Estate | Sinomach Automobile vs. China Vanke Co | Sinomach Automobile vs. China Merchants Shekou |
| Risuntek vs. Qumei Furniture Group | Risuntek vs. Sobute New Materials | Risuntek vs. DO Home Collection | Risuntek vs. Guangzhou Tinci Materials |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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