Correlation Between Sinomach Automobile and Sinosteel Luonai
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By analyzing existing cross correlation between Sinomach Automobile Co and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Sinomach Automobile and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach Automobile and Sinosteel Luonai.
Diversification Opportunities for Sinomach Automobile and Sinosteel Luonai
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Sinosteel is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach Automobile Co and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Sinomach Automobile i.e., Sinomach Automobile and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Sinomach Automobile and Sinosteel Luonai
Assuming the 90 days trading horizon Sinomach Automobile Co is expected to under-perform the Sinosteel Luonai. In addition to that, Sinomach Automobile is 1.25 times more volatile than Sinosteel Luonai Materials. It trades about -0.03 of its total potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about -0.03 per unit of volatility. If you would invest 599.00 in Sinosteel Luonai Materials on September 1, 2024 and sell it today you would lose (174.00) from holding Sinosteel Luonai Materials or give up 29.05% 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. Sinosteel Luonai Materials
Performance |
| Timeline |
| Sinomach Automobile |
| Sinosteel Luonai Mat |
Sinomach Automobile and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach Automobile and Sinosteel Luonai
The main advantage of trading using opposite Sinomach Automobile and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach Automobile position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai's long position.| Sinomach Automobile vs. Ming Yang Smart | Sinomach Automobile vs. 159681 | Sinomach Automobile vs. 159005 | Sinomach Automobile vs. Loctek Ergonomic Technology |
| Sinosteel Luonai vs. Hangzhou Minsheng Healthcare | Sinosteel Luonai vs. Yunnan Jianzhijia Health Chain | Sinosteel Luonai vs. Everjoy Health Group | Sinosteel Luonai vs. By health |
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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