Correlation Between Sinomach General and Kontour Medical
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By analyzing existing cross correlation between Sinomach General Machinery and Kontour Medical Technology, you can compare the effects of market volatilities on Sinomach General and Kontour Medical 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 Kontour Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Kontour Medical.
Diversification Opportunities for Sinomach General and Kontour Medical
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Kontour is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Kontour Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontour Medical Tech 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 Kontour Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontour Medical Tech has no effect on the direction of Sinomach General i.e., Sinomach General and Kontour Medical go up and down completely randomly.
Pair Corralation between Sinomach General and Kontour Medical
Assuming the 90 days trading horizon Sinomach General is expected to generate 5.25 times less return on investment than Kontour Medical. In addition to that, Sinomach General is 1.14 times more volatile than Kontour Medical Technology. It trades about 0.01 of its total potential returns per unit of risk. Kontour Medical Technology is currently generating about 0.09 per unit of volatility. If you would invest 1,894 in Kontour Medical Technology on October 12, 2024 and sell it today you would earn a total of 881.00 from holding Kontour Medical Technology or generate 46.52% 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. Kontour Medical Technology
Performance |
| Timeline |
| Sinomach General Mac |
| Kontour Medical Tech |
Sinomach General and Kontour Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Kontour Medical
The main advantage of trading using opposite Sinomach General and Kontour Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Kontour Medical 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 Kontour Medical will offset losses from the drop in Kontour Medical's long position.| Sinomach General vs. Luyin Investment Group | Sinomach General vs. Fujian Anjoy Foods | Sinomach General vs. Bohai Leasing Co | Sinomach General vs. Muyuan Foodstuff Co |
| Kontour Medical vs. Nuode Investment Co | Kontour Medical vs. PKU HealthCare Corp | Kontour Medical vs. Meinian Onehealth Healthcare | Kontour Medical vs. Hubei Geoway Investment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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