Correlation Between Sinomach Automobile and Lepu Medical
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By analyzing existing cross correlation between Sinomach Automobile Co and Lepu Medical Tech, you can compare the effects of market volatilities on Sinomach Automobile and Lepu Medical 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 Lepu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Lepu Medical.
Diversification Opportunities for Sinomach Automobile and Lepu Medical
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Lepu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Lepu Medical Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lepu Medical Tech 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 Lepu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lepu Medical Tech has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Lepu Medical go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Lepu Medical
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 1.96 times more return on investment than Lepu Medical. However, Sinomach Automobile is 1.96 times more volatile than Lepu Medical Tech. It trades about -0.13 of its potential returns per unit of risk. Lepu Medical Tech is currently generating about -0.26 per unit of risk. If you would invest 672.00 in Sinomach Automobile Co on October 17, 2024 and sell it today you would lose (66.00) from holding Sinomach Automobile Co or give up 9.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Lepu Medical Tech
Performance |
| Timeline |
| Sinomach Automobile |
| Lepu Medical Tech |
Sinomach Automobile and Lepu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Lepu Medical
The main advantage of trading using opposite Sinomach Automobile and Lepu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Lepu Medical 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 Lepu Medical will offset losses from the drop in Lepu Medical's long position.| Sinomach Automobile vs. GRINM Semiconductor Materials | Sinomach Automobile vs. Western Metal Materials | Sinomach Automobile vs. Tibet Huayu Mining | Sinomach Automobile vs. Shanghai V Test Semiconductor |
| Lepu Medical vs. Wuhan Yangtze Communication | Lepu Medical vs. Dosilicon Co | Lepu Medical vs. Jinsanjiang Silicon Material | Lepu Medical vs. Zhejiang JIULI Hi tech |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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