Correlation Between Sinomach General and Nanjing Vishee
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By analyzing existing cross correlation between Sinomach General Machinery and Nanjing Vishee Medical, you can compare the effects of market volatilities on Sinomach General and Nanjing Vishee 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 Nanjing Vishee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinomach General and Nanjing Vishee.
Diversification Opportunities for Sinomach General and Nanjing Vishee
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinomach and Nanjing is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sinomach General Machinery and Nanjing Vishee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Vishee Medical 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 Nanjing Vishee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Vishee Medical has no effect on the direction of Sinomach General i.e., Sinomach General and Nanjing Vishee go up and down completely randomly.
Pair Corralation between Sinomach General and Nanjing Vishee
Assuming the 90 days trading horizon Sinomach General Machinery is expected to under-perform the Nanjing Vishee. But the stock apears to be less risky and, when comparing its historical volatility, Sinomach General Machinery is 1.13 times less risky than Nanjing Vishee. The stock trades about -0.2 of its potential returns per unit of risk. The Nanjing Vishee Medical is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 3,352 in Nanjing Vishee Medical on October 11, 2024 and sell it today you would lose (615.00) from holding Nanjing Vishee Medical or give up 18.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinomach General Machinery vs. Nanjing Vishee Medical
Performance |
| Timeline |
| Sinomach General Mac |
| Nanjing Vishee Medical |
Sinomach General and Nanjing Vishee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinomach General and Nanjing Vishee
The main advantage of trading using opposite Sinomach General and Nanjing Vishee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinomach General position performs unexpectedly, Nanjing Vishee 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 Nanjing Vishee will offset losses from the drop in Nanjing Vishee'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 |
| Nanjing Vishee vs. Holitech Technology Co | Nanjing Vishee vs. Zotye Automobile Co | Nanjing Vishee vs. Bus Online Co | Nanjing Vishee vs. Cultural Investment Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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