Correlation Between Sinomach General and Sinomach Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinomach General Machinery and Sinomach Automobile Co, you can compare the effects of market volatilities on Sinomach General and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Sinomach Automobile.
Diversification Opportunities for Sinomach General and Sinomach Automobile
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Sinomach is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Sinomach General i.e., Sinomach General and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Sinomach General and Sinomach Automobile
Assuming the 90 days trading horizon Sinomach General Machinery is expected to generate 1.07 times more return on investment than Sinomach Automobile. However, Sinomach General is 1.07 times more volatile than Sinomach Automobile Co. It trades about 0.04 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about -0.02 per unit of risk. If you would invest 1,259 in Sinomach General Machinery on August 31, 2024 and sell it today you would earn a total of 400.00 from holding Sinomach General Machinery or generate 31.77% 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. Sinomach Automobile Co
Performance |
| Timeline |
| Sinomach General Mac |
| Sinomach Automobile |
Sinomach General and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Sinomach Automobile
The main advantage of trading using opposite Sinomach General and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile'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 |
| Sinomach Automobile vs. China State Construction | Sinomach Automobile vs. China Merchants Shekou | Sinomach Automobile vs. Huafa Industrial Co | Sinomach Automobile vs. China International Capital |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |