Correlation Between Cultural Investment and Sinomach General
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By analyzing existing cross correlation between Cultural Investment Holdings and Sinomach General Machinery, you can compare the effects of market volatilities on Cultural Investment and Sinomach General 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 Cultural Investment with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and Sinomach General.
Diversification Opportunities for Cultural Investment and Sinomach General
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and Sinomach is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment Holdings and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac and Cultural Investment 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 Cultural Investment Holdings are associated (or correlated) with Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Cultural Investment i.e., Cultural Investment and Sinomach General go up and down completely randomly.
Pair Corralation between Cultural Investment and Sinomach General
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 0.9 times more return on investment than Sinomach General. However, Cultural Investment Holdings is 1.11 times less risky than Sinomach General. It trades about 0.14 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about -0.01 per unit of risk. If you would invest 200.00 in Cultural Investment Holdings on August 31, 2024 and sell it today you would earn a total of 21.00 from holding Cultural Investment Holdings or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. Sinomach General Machinery
Performance |
| Timeline |
| Cultural Investment |
| Sinomach General Mac |
Cultural Investment and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and Sinomach General
The main advantage of trading using opposite Cultural Investment and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment position performs unexpectedly, Sinomach General 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 General will offset losses from the drop in Sinomach General's long position.| Cultural Investment vs. BYD Co Ltd | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China State Construction |
| Sinomach General vs. Cultural Investment Holdings | Sinomach General vs. Gome Telecom Equipment | Sinomach General vs. Bus Online Co | Sinomach General vs. Holitech Technology Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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