Correlation Between Sinomach General and Henan Shuanghui
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinomach General Machinery and Henan Shuanghui Investment, you can compare the effects of market volatilities on Sinomach General and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Henan Shuanghui.
Diversification Opportunities for Sinomach General and Henan Shuanghui
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sinomach and Henan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Sinomach General i.e., Sinomach General and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Sinomach General and Henan Shuanghui
Assuming the 90 days trading horizon Sinomach General Machinery is expected to generate 2.17 times more return on investment than Henan Shuanghui. However, Sinomach General is 2.17 times more volatile than Henan Shuanghui Investment. It trades about -0.04 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about -0.11 per unit of risk. If you would invest 1,525 in Sinomach General Machinery on October 22, 2024 and sell it today you would lose (31.00) from holding Sinomach General Machinery or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Sinomach General Mac |
| Henan Shuanghui Inve |
Sinomach General and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Henan Shuanghui
The main advantage of trading using opposite Sinomach General and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Sinomach General vs. Jahen Household Products | Sinomach General vs. Pengxin International Mining | Sinomach General vs. Xinjiang Baodi Mining | Sinomach General vs. Shandong Polymer Biochemicals |
| Henan Shuanghui vs. China Sports Industry | Henan Shuanghui vs. Sportsoul Co Ltd | Henan Shuanghui vs. Luolai Home Textile | Henan Shuanghui vs. Fiberhome Telecommunication Technologies |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |