Correlation Between Sinomach General and Shaanxi Broadcast
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By analyzing existing cross correlation between Sinomach General Machinery and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Sinomach General and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Shaanxi Broadcast.
Diversification Opportunities for Sinomach General and Shaanxi Broadcast
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinomach and Shaanxi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Sinomach General i.e., Sinomach General and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Sinomach General and Shaanxi Broadcast
Assuming the 90 days trading horizon Sinomach General Machinery is expected to generate 0.91 times more return on investment than Shaanxi Broadcast. However, Sinomach General Machinery is 1.1 times less risky than Shaanxi Broadcast. It trades about -0.25 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about -0.34 per unit of risk. If you would invest 1,682 in Sinomach General Machinery on October 11, 2024 and sell it today you would lose (228.00) from holding Sinomach General Machinery or give up 13.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| Sinomach General Mac |
| Shaanxi Broadcast |
Sinomach General and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Shaanxi Broadcast
The main advantage of trading using opposite Sinomach General and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| Sinomach General vs. Luyin Investment Group | Sinomach General vs. Fujian Anjoy Foods | Sinomach General vs. Bohai Leasing Co | Sinomach General vs. Muyuan Foodstuff Co |
| Shaanxi Broadcast vs. Nanxing Furniture Machinery | Shaanxi Broadcast vs. Shaanxi Construction Machinery | Shaanxi Broadcast vs. Shenwu Energy Saving | Shaanxi Broadcast vs. Sinomach General Machinery |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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