Correlation Between Sinomach General and Qiming Information
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By analyzing existing cross correlation between Sinomach General Machinery and Qiming Information Technology, you can compare the effects of market volatilities on Sinomach General and Qiming Information 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 Qiming Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Qiming Information.
Diversification Opportunities for Sinomach General and Qiming Information
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Qiming is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Qiming Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiming Information 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 Qiming Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiming Information has no effect on the direction of Sinomach General i.e., Sinomach General and Qiming Information go up and down completely randomly.
Pair Corralation between Sinomach General and Qiming Information
Assuming the 90 days trading horizon Sinomach General Machinery is expected to generate 0.7 times more return on investment than Qiming Information. However, Sinomach General Machinery is 1.42 times less risky than Qiming Information. It trades about -0.18 of its potential returns per unit of risk. Qiming Information Technology is currently generating about -0.21 per unit of risk. If you would invest 1,670 in Sinomach General Machinery on October 16, 2024 and sell it today you would lose (173.00) from holding Sinomach General Machinery or give up 10.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. Qiming Information Technology
Performance |
| Timeline |
| Sinomach General Mac |
| Qiming Information |
Sinomach General and Qiming Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Qiming Information
The main advantage of trading using opposite Sinomach General and Qiming Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Qiming Information 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 Qiming Information will offset losses from the drop in Qiming Information's long position.| Sinomach General vs. Tieling Newcity Investment | Sinomach General vs. Beijing Shunxin Agriculture | Sinomach General vs. Hengdian Entertainment Co | Sinomach General vs. Zhongrun Resources Investment |
| Qiming Information vs. Bank of Communications | Qiming Information vs. China Satellite Communications | Qiming Information vs. Beijing Bewinner Communications | Qiming Information vs. Wintao Communications Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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