Correlation Between Sinomach General and Gansu Huangtai
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By analyzing existing cross correlation between Sinomach General Machinery and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Sinomach General and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Gansu Huangtai.
Diversification Opportunities for Sinomach General and Gansu Huangtai
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sinomach and Gansu is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Sinomach General i.e., Sinomach General and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Sinomach General and Gansu Huangtai
Assuming the 90 days trading horizon Sinomach General Machinery is expected to under-perform the Gansu Huangtai. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach General Machinery is 1.79 times less risky than Gansu Huangtai. The stock trades about -0.2 of its potential returns per unit of risk. The Gansu Huangtai Wine marketing is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,553 in Gansu Huangtai Wine marketing on October 12, 2024 and sell it today you would earn a total of 149.00 from holding Gansu Huangtai Wine marketing or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Sinomach General Mac |
| Gansu Huangtai Wine |
Sinomach General and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Gansu Huangtai
The main advantage of trading using opposite Sinomach General and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Sinomach General vs. Yunnan Jianzhijia Health Chain | Sinomach General vs. Shanghai Rongtai Health | Sinomach General vs. De Rucci Healthy | Sinomach General vs. Dezhan HealthCare Co |
| Gansu Huangtai vs. Anhui Tongguan Copper | Gansu Huangtai vs. Qingdao Foods Co | Gansu Huangtai vs. Shanghai Yanpu Metal | Gansu Huangtai vs. Dalian Thermal Power |
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 Stocks Directory module to find actively traded stocks across global markets.
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