Correlation Between Sinomach General and Xingguang Agricultural
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinomach General Machinery and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Sinomach General and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Xingguang Agricultural.
Diversification Opportunities for Sinomach General and Xingguang Agricultural
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Xingguang is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Sinomach General i.e., Sinomach General and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Sinomach General and Xingguang Agricultural
Assuming the 90 days trading horizon Sinomach General Machinery is expected to generate 0.84 times more return on investment than Xingguang Agricultural. However, Sinomach General Machinery is 1.19 times less risky than Xingguang Agricultural. It trades about 0.02 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about 0.01 per unit of risk. If you would invest 1,285 in Sinomach General Machinery on October 7, 2024 and sell it today you would earn a total of 131.00 from holding Sinomach General Machinery or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Sinomach General Mac |
| Xingguang Agricultural |
Sinomach General and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Xingguang Agricultural
The main advantage of trading using opposite Sinomach General and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural'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 |
| Xingguang Agricultural vs. BeiGene | Xingguang Agricultural vs. G bits Network Technology | Xingguang Agricultural vs. China Mobile Limited | Xingguang Agricultural vs. Gansu Jiu Steel |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |