Correlation Between Danhua Chemical and Sinomach General
Specify exactly 2 symbols:
By analyzing existing cross correlation between Danhua Chemical Technology and Sinomach General Machinery, you can compare the effects of market volatilities on Danhua Chemical 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 Danhua Chemical with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danhua Chemical and Sinomach General.
Diversification Opportunities for Danhua Chemical and Sinomach General
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Danhua and Sinomach is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Danhua Chemical Technology 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 Danhua Chemical 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 Danhua Chemical Technology 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 Danhua Chemical i.e., Danhua Chemical and Sinomach General go up and down completely randomly.
Pair Corralation between Danhua Chemical and Sinomach General
Assuming the 90 days trading horizon Danhua Chemical Technology is expected to generate 1.3 times more return on investment than Sinomach General. However, Danhua Chemical is 1.3 times more volatile than Sinomach General Machinery. It trades about 0.18 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.11 per unit of risk. If you would invest 275.00 in Danhua Chemical Technology on September 4, 2024 and sell it today you would earn a total of 52.00 from holding Danhua Chemical Technology or generate 18.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Danhua Chemical Technology vs. Sinomach General Machinery
Performance |
| Timeline |
| Danhua Chemical Tech |
| Sinomach General Mac |
Danhua Chemical and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danhua Chemical and Sinomach General
The main advantage of trading using opposite Danhua Chemical and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danhua Chemical 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.| Danhua Chemical vs. Sinomach General Machinery | Danhua Chemical vs. Shenzhen Zhongzhuang Construction | Danhua Chemical vs. Tengda Construction Group | Danhua Chemical vs. Anhui Huilong Agricultural |
| Sinomach General vs. Shanghai Action Education | Sinomach General vs. China Life Insurance | Sinomach General vs. Eastroc Beverage Group | Sinomach General vs. Fujian Anjoy Foods |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |