Correlation Between Sinomach General and Kunshan Guoli
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By analyzing existing cross correlation between Sinomach General Machinery and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Sinomach General and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Kunshan Guoli.
Diversification Opportunities for Sinomach General and Kunshan Guoli
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Kunshan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Sinomach General i.e., Sinomach General and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Sinomach General and Kunshan Guoli
Assuming the 90 days trading horizon Sinomach General Machinery is expected to generate 0.8 times more return on investment than Kunshan Guoli. However, Sinomach General Machinery is 1.24 times less risky than Kunshan Guoli. It trades about 0.01 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about -0.07 per unit of risk. If you would invest 1,584 in Sinomach General Machinery on September 18, 2024 and sell it today you would earn a total of 2.00 from holding Sinomach General Machinery or generate 0.13% 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. Kunshan Guoli Electronic
Performance |
| Timeline |
| Sinomach General Mac |
| Kunshan Guoli Electronic |
Sinomach General and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Kunshan Guoli
The main advantage of trading using opposite Sinomach General and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| Sinomach General vs. PetroChina Co Ltd | Sinomach General vs. China Mobile Limited | Sinomach General vs. CNOOC Limited | Sinomach General vs. Ping An Insurance |
| Kunshan Guoli vs. Industrial and Commercial | Kunshan Guoli vs. Agricultural Bank of | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Bank of China |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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