Correlation Between Sinomach General and Wuliangye Yibin
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By analyzing existing cross correlation between Sinomach General Machinery and Wuliangye Yibin Co, you can compare the effects of market volatilities on Sinomach General and Wuliangye Yibin 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 General with a short position of Wuliangye Yibin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Wuliangye Yibin.
Diversification Opportunities for Sinomach General and Wuliangye Yibin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Wuliangye is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Wuliangye Yibin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuliangye Yibin and Sinomach General 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 General Machinery are associated (or correlated) with Wuliangye Yibin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuliangye Yibin has no effect on the direction of Sinomach General i.e., Sinomach General and Wuliangye Yibin go up and down completely randomly.
Pair Corralation between Sinomach General and Wuliangye Yibin
Assuming the 90 days trading horizon Sinomach General Machinery is expected to generate 1.37 times more return on investment than Wuliangye Yibin. However, Sinomach General is 1.37 times more volatile than Wuliangye Yibin Co. It trades about 0.08 of its potential returns per unit of risk. Wuliangye Yibin Co is currently generating about 0.03 per unit of risk. If you would invest 1,246 in Sinomach General Machinery on September 1, 2024 and sell it today you would earn a total of 413.00 from holding Sinomach General Machinery or generate 33.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. Wuliangye Yibin Co
Performance |
| Timeline |
| Sinomach General Mac |
| Wuliangye Yibin |
Sinomach General and Wuliangye Yibin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Wuliangye Yibin
The main advantage of trading using opposite Sinomach General and Wuliangye Yibin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Wuliangye Yibin 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 Wuliangye Yibin will offset losses from the drop in Wuliangye Yibin's long position.| Sinomach General vs. Everjoy Health Group | Sinomach General vs. FSPG Hi Tech Co | Sinomach General vs. Sichuan Jinshi Technology | Sinomach General vs. Guangdong Shenglu Telecommunication |
| Wuliangye Yibin vs. Qinghaihuading Industrial Co | Wuliangye Yibin vs. Nanjing Putian Telecommunications | Wuliangye Yibin vs. Xiangyang Automobile Bearing | Wuliangye Yibin vs. Anhui Jianghuai Automobile |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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