Correlation Between Sinomach General and Marssenger Kitchenware
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By analyzing existing cross correlation between Sinomach General Machinery and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Sinomach General and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Marssenger Kitchenware.
Diversification Opportunities for Sinomach General and Marssenger Kitchenware
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Marssenger is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Sinomach General i.e., Sinomach General and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Sinomach General and Marssenger Kitchenware
Assuming the 90 days trading horizon Sinomach General Machinery is expected to generate 0.39 times more return on investment than Marssenger Kitchenware. However, Sinomach General Machinery is 2.55 times less risky than Marssenger Kitchenware. It trades about 0.0 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.04 per unit of risk. If you would invest 1,519 in Sinomach General Machinery on October 30, 2024 and sell it today you would lose (8.00) from holding Sinomach General Machinery or give up 0.53% 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. Marssenger Kitchenware Co
Performance |
| Timeline |
| Sinomach General Mac |
| Marssenger Kitchenware |
Sinomach General and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Marssenger Kitchenware
The main advantage of trading using opposite Sinomach General and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Sinomach General vs. Fuzhou Rockchip Electronics | Sinomach General vs. Dongnan Electronics Co | Sinomach General vs. Montage Technology Co | Sinomach General vs. YiDong Electronics 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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