Correlation Between Sinomach Automobile and Sinomach General
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By analyzing existing cross correlation between Sinomach Automobile Co and Sinomach General Machinery, you can compare the effects of market volatilities on Sinomach Automobile and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Sinomach General.
Diversification Opportunities for Sinomach Automobile and Sinomach General
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Sinomach is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Sinomach General go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Sinomach General
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Sinomach General. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach Automobile Co is 1.07 times less risky than Sinomach General. The stock trades about -0.02 of its potential returns per unit of risk. The Sinomach General Machinery is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,259 in Sinomach General Machinery on August 31, 2024 and sell it today you would earn a total of 400.00 from holding Sinomach General Machinery or generate 31.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach Automobile Co vs. Sinomach General Machinery
Performance |
| Timeline |
| Sinomach Automobile |
| Sinomach General Mac |
Sinomach Automobile and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Sinomach General
The main advantage of trading using opposite Sinomach Automobile and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Sinomach Automobile vs. China State Construction | Sinomach Automobile vs. China Merchants Shekou | Sinomach Automobile vs. Huafa Industrial Co | Sinomach Automobile vs. China International Capital |
| Sinomach General vs. Cultural Investment Holdings | Sinomach General vs. Gome Telecom Equipment | Sinomach General vs. Bus Online Co | Sinomach General vs. Holitech Technology 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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