Correlation Between Sinomach Automobile and Beijing Sanyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinomach Automobile Co and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Sinomach Automobile and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Beijing Sanyuan.
Diversification Opportunities for Sinomach Automobile and Beijing Sanyuan
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Beijing is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Beijing Sanyuan
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to generate 1.92 times more return on investment than Beijing Sanyuan. However, Sinomach Automobile is 1.92 times more volatile than Beijing Sanyuan Foods. It trades about 0.0 of its potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.02 per unit of risk. If you would invest 863.00 in Sinomach Automobile Co on August 29, 2024 and sell it today you would lose (214.00) from holding Sinomach Automobile Co or give up 24.8% 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. Beijing Sanyuan Foods
Performance |
| Timeline |
| Sinomach Automobile |
| Beijing Sanyuan Foods |
Sinomach Automobile and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Beijing Sanyuan
The main advantage of trading using opposite Sinomach Automobile and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Sinomach Automobile vs. Citic Guoan Wine | Sinomach Automobile vs. Milkyway Chemical Supply | Sinomach Automobile vs. Easyhome New Retail | Sinomach Automobile vs. Sunny Loan Top |
| Beijing Sanyuan vs. China Petroleum Chemical | Beijing Sanyuan vs. PetroChina Co Ltd | Beijing Sanyuan vs. China State Construction | Beijing Sanyuan vs. China Railway Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |