Correlation Between Sinomach General and Lootom Telcovideo
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By analyzing existing cross correlation between Sinomach General Machinery and Lootom Telcovideo Network, you can compare the effects of market volatilities on Sinomach General and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Lootom Telcovideo.
Diversification Opportunities for Sinomach General and Lootom Telcovideo
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinomach and Lootom is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of Sinomach General i.e., Sinomach General and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between Sinomach General and Lootom Telcovideo
Assuming the 90 days trading horizon Sinomach General is expected to generate 1.72 times less return on investment than Lootom Telcovideo. In addition to that, Sinomach General is 1.15 times more volatile than Lootom Telcovideo Network. It trades about 0.07 of its total potential returns per unit of risk. Lootom Telcovideo Network is currently generating about 0.13 per unit of volatility. If you would invest 544.00 in Lootom Telcovideo Network on October 7, 2024 and sell it today you would earn a total of 313.00 from holding Lootom Telcovideo Network or generate 57.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. Lootom Telcovideo Network
Performance |
| Timeline |
| Sinomach General Mac |
| Lootom Telcovideo Network |
Sinomach General and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Lootom Telcovideo
The main advantage of trading using opposite Sinomach General and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo's long position.| Sinomach General vs. BeiGene | Sinomach General vs. G bits Network Technology | Sinomach General vs. China Mobile Limited | Sinomach General vs. Gansu Jiu Steel |
| Lootom Telcovideo vs. PetroChina Co Ltd | Lootom Telcovideo vs. Gansu Jiu Steel | Lootom Telcovideo vs. Aba Chemicals Corp | Lootom Telcovideo vs. Yes Optoelectronics 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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