Correlation Between Sinomach General and Xinya Electronic
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By analyzing existing cross correlation between Sinomach General Machinery and Xinya Electronic Co, you can compare the effects of market volatilities on Sinomach General and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Xinya Electronic.
Diversification Opportunities for Sinomach General and Xinya Electronic
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sinomach and Xinya is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Sinomach General i.e., Sinomach General and Xinya Electronic go up and down completely randomly.
Pair Corralation between Sinomach General and Xinya Electronic
Assuming the 90 days trading horizon Sinomach General Machinery is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach General Machinery is 1.71 times less risky than Xinya Electronic. The stock trades about -0.17 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,472 in Xinya Electronic Co on October 17, 2024 and sell it today you would lose (32.00) from holding Xinya Electronic Co or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. Xinya Electronic Co
Performance |
| Timeline |
| Sinomach General Mac |
| Xinya Electronic |
Sinomach General and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Xinya Electronic
The main advantage of trading using opposite Sinomach General and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Sinomach General vs. Kuangda Technology Group | Sinomach General vs. Montage Technology Co | Sinomach General vs. Hoshine Silicon Ind | Sinomach General vs. Eyebright Medical Technology |
| Xinya Electronic vs. Weichai Heavy Machinery | Xinya Electronic vs. Zhejiang Yinlun Machinery | Xinya Electronic vs. Hunan Tyen Machinery | Xinya Electronic 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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