Correlation Between Hunan Tyen and Sinomach Automobile
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By analyzing existing cross correlation between Hunan Tyen Machinery and Sinomach Automobile Co, you can compare the effects of market volatilities on Hunan Tyen and Sinomach Automobile 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 Hunan Tyen with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and Sinomach Automobile.
Diversification Opportunities for Hunan Tyen and Sinomach Automobile
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Sinomach is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Hunan Tyen 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 Hunan Tyen Machinery are associated (or correlated) with Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Hunan Tyen i.e., Hunan Tyen and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Hunan Tyen and Sinomach Automobile
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to under-perform the Sinomach Automobile. In addition to that, Hunan Tyen is 1.9 times more volatile than Sinomach Automobile Co. It trades about -0.05 of its total potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.0 per unit of volatility. If you would invest 664.00 in Sinomach Automobile Co on August 28, 2024 and sell it today you would lose (2.00) from holding Sinomach Automobile Co or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. Sinomach Automobile Co
Performance |
| Timeline |
| Hunan Tyen Machinery |
| Sinomach Automobile |
Hunan Tyen and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and Sinomach Automobile
The main advantage of trading using opposite Hunan Tyen and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| Hunan Tyen vs. China State Construction | Hunan Tyen vs. Huafa Industrial Co | Hunan Tyen vs. China International Capital | Hunan Tyen vs. Kweichow Moutai Co |
| Sinomach Automobile vs. Citic Guoan Wine | Sinomach Automobile vs. Milkyway Chemical Supply | Sinomach Automobile vs. Easyhome New Retail | Sinomach Automobile vs. Sunny Loan Top |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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