Correlation Between Chinese Universe and Sinomach General
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By analyzing existing cross correlation between Chinese Universe Publishing and Sinomach General Machinery, you can compare the effects of market volatilities on Chinese Universe 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 Chinese Universe with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Sinomach General.
Diversification Opportunities for Chinese Universe and Sinomach General
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chinese and Sinomach is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing 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 Chinese Universe 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 Chinese Universe Publishing 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 Chinese Universe i.e., Chinese Universe and Sinomach General go up and down completely randomly.
Pair Corralation between Chinese Universe and Sinomach General
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Sinomach General. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Universe Publishing is 1.13 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 1,267 in Sinomach General Machinery on August 29, 2024 and sell it today you would earn a total of 336.00 from holding Sinomach General Machinery or generate 26.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Sinomach General Machinery
Performance |
| Timeline |
| Chinese Universe Pub |
| Sinomach General Mac |
Chinese Universe and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Sinomach General
The main advantage of trading using opposite Chinese Universe and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe 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.| Chinese Universe vs. China State Construction | Chinese Universe vs. Huafa Industrial Co | Chinese Universe vs. China International Capital | Chinese Universe vs. Kweichow Moutai Co |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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