Correlation Between Sinomach Automobile and Shengtak New
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By analyzing existing cross correlation between Sinomach Automobile Co and Shengtak New Material, you can compare the effects of market volatilities on Sinomach Automobile and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Shengtak New.
Diversification Opportunities for Sinomach Automobile and Shengtak New
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Shengtak is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Shengtak New go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Shengtak New
Assuming the 90 days trading horizon Sinomach Automobile is expected to generate 12.47 times less return on investment than Shengtak New. But when comparing it to its historical volatility, Sinomach Automobile Co is 1.16 times less risky than Shengtak New. It trades about 0.0 of its potential returns per unit of risk. Shengtak New Material is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,271 in Shengtak New Material on September 28, 2024 and sell it today you would lose (114.00) from holding Shengtak New Material or give up 3.49% 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. Shengtak New Material
Performance |
| Timeline |
| Sinomach Automobile |
| Shengtak New Material |
Sinomach Automobile and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Shengtak New
The main advantage of trading using opposite Sinomach Automobile and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| Sinomach Automobile vs. Guangdong Jingyi Metal | Sinomach Automobile vs. Wuhan Hvsen Biotechnology | Sinomach Automobile vs. Ningbo MedicalSystem Biotechnology | Sinomach Automobile vs. Ningbo Ligong Online |
| Shengtak New vs. Peoples Insurance of | Shengtak New vs. Anhui Deli Household | Shengtak New vs. Harvest Fund Management | Shengtak New vs. Marssenger Kitchenware Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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