Correlation Between Sinomach General and Kingclean Electric
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By analyzing existing cross correlation between Sinomach General Machinery and Kingclean Electric Co, you can compare the effects of market volatilities on Sinomach General and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Kingclean Electric.
Diversification Opportunities for Sinomach General and Kingclean Electric
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sinomach and Kingclean is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Sinomach General i.e., Sinomach General and Kingclean Electric go up and down completely randomly.
Pair Corralation between Sinomach General and Kingclean Electric
Assuming the 90 days trading horizon Sinomach General Machinery is expected to generate 2.21 times more return on investment than Kingclean Electric. However, Sinomach General is 2.21 times more volatile than Kingclean Electric Co. It trades about 0.02 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.04 per unit of risk. If you would invest 1,411 in Sinomach General Machinery on October 15, 2024 and sell it today you would earn a total of 12.00 from holding Sinomach General Machinery or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. Kingclean Electric Co
Performance |
| Timeline |
| Sinomach General Mac |
| Kingclean Electric |
Sinomach General and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Kingclean Electric
The main advantage of trading using opposite Sinomach General and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.| Sinomach General vs. Shandong Hongchuang Aluminum | Sinomach General vs. Anhui Transport Consulting | Sinomach General vs. Rising Nonferrous Metals | Sinomach General vs. Guangdong Qunxing Toys |
| Kingclean Electric vs. Guangdong Wens Foodstuff | Kingclean Electric vs. Anji Foodstuff Co | Kingclean Electric vs. Dymatic Chemicals | Kingclean Electric vs. Jiahe Foods Industry |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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