Correlation Between Sinomach General and Nanjing Putian
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By analyzing existing cross correlation between Sinomach General Machinery and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Sinomach General and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Nanjing Putian.
Diversification Opportunities for Sinomach General and Nanjing Putian
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Nanjing is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Sinomach General i.e., Sinomach General and Nanjing Putian go up and down completely randomly.
Pair Corralation between Sinomach General and Nanjing Putian
Assuming the 90 days trading horizon Sinomach General Machinery is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach General Machinery is 1.07 times less risky than Nanjing Putian. The stock trades about -0.01 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 387.00 in Nanjing Putian Telecommunications on August 31, 2024 and sell it today you would earn a total of 61.00 from holding Nanjing Putian Telecommunications or generate 15.76% 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. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Sinomach General Mac |
| Nanjing Putian Telec |
Sinomach General and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Nanjing Putian
The main advantage of trading using opposite Sinomach General and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Sinomach General vs. Cultural Investment Holdings | Sinomach General vs. Gome Telecom Equipment | Sinomach General vs. Bus Online Co | Sinomach General vs. Holitech Technology Co |
| Nanjing Putian vs. Kweichow Moutai Co | Nanjing Putian vs. NAURA Technology Group | Nanjing Putian vs. APT Medical | Nanjing Putian vs. Contemporary Amperex Technology |
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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