Correlation Between Sinomach General and Railway Signal
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By analyzing existing cross correlation between Sinomach General Machinery and Railway Signal Communication, you can compare the effects of market volatilities on Sinomach General and Railway Signal 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 Railway Signal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Railway Signal.
Diversification Opportunities for Sinomach General and Railway Signal
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Railway is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Railway Signal Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Railway Signal Commu 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 Railway Signal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Railway Signal Commu has no effect on the direction of Sinomach General i.e., Sinomach General and Railway Signal go up and down completely randomly.
Pair Corralation between Sinomach General and Railway Signal
Assuming the 90 days trading horizon Sinomach General is expected to generate 1.05 times less return on investment than Railway Signal. In addition to that, Sinomach General is 1.3 times more volatile than Railway Signal Communication. It trades about 0.03 of its total potential returns per unit of risk. Railway Signal Communication is currently generating about 0.04 per unit of volatility. If you would invest 456.00 in Railway Signal Communication on September 5, 2024 and sell it today you would earn a total of 188.00 from holding Railway Signal Communication or generate 41.23% 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. Railway Signal Communication
Performance |
| Timeline |
| Sinomach General Mac |
| Railway Signal Commu |
Sinomach General and Railway Signal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Railway Signal
The main advantage of trading using opposite Sinomach General and Railway Signal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Railway Signal 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 Railway Signal will offset losses from the drop in Railway Signal's long position.| Sinomach General vs. Caihong Display Devices | Sinomach General vs. Markor International Home | Sinomach General vs. Shanghai Shuixing Home | Sinomach General vs. Hunan Mendale Hometextile |
| Railway Signal vs. Sinomach General Machinery | Railway Signal vs. Guangzhou Jinyi Media | Railway Signal vs. Easyhome New Retail | Railway Signal vs. Zhejiang Daily Media |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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