Correlation Between Sinomach General and Yonyou Auto
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By analyzing existing cross correlation between Sinomach General Machinery and Yonyou Auto Information, you can compare the effects of market volatilities on Sinomach General and Yonyou Auto 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 Yonyou Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Yonyou Auto.
Diversification Opportunities for Sinomach General and Yonyou Auto
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinomach and Yonyou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Yonyou Auto Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonyou Auto Information 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 Yonyou Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonyou Auto Information has no effect on the direction of Sinomach General i.e., Sinomach General and Yonyou Auto go up and down completely randomly.
Pair Corralation between Sinomach General and Yonyou Auto
Assuming the 90 days trading horizon Sinomach General Machinery is expected to generate 1.11 times more return on investment than Yonyou Auto. However, Sinomach General is 1.11 times more volatile than Yonyou Auto Information. It trades about 0.02 of its potential returns per unit of risk. Yonyou Auto Information is currently generating about -0.03 per unit of risk. If you would invest 1,365 in Sinomach General Machinery on October 28, 2024 and sell it today you would earn a total of 154.00 from holding Sinomach General Machinery or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 86.75% |
| Values | Daily Returns |
Sinomach General Machinery vs. Yonyou Auto Information
Performance |
| Timeline |
| Sinomach General Mac |
| Yonyou Auto Information |
Sinomach General and Yonyou Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Yonyou Auto
The main advantage of trading using opposite Sinomach General and Yonyou Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Yonyou Auto 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 Yonyou Auto will offset losses from the drop in Yonyou Auto's long position.| Sinomach General vs. Ming Yang Smart | Sinomach General vs. 159681 | Sinomach General vs. 159005 | Sinomach General vs. Loctek Ergonomic Technology |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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