Correlation Between Cinda Securities and Sinomach General
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By analyzing existing cross correlation between Cinda Securities Co and Sinomach General Machinery, you can compare the effects of market volatilities on Cinda Securities 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 Cinda Securities with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Sinomach General.
Diversification Opportunities for Cinda Securities and Sinomach General
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cinda and Sinomach is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co 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 Cinda Securities 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 Cinda Securities Co 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 Cinda Securities i.e., Cinda Securities and Sinomach General go up and down completely randomly.
Pair Corralation between Cinda Securities and Sinomach General
Assuming the 90 days trading horizon Cinda Securities is expected to generate 263.67 times less return on investment than Sinomach General. But when comparing it to its historical volatility, Cinda Securities Co is 1.22 times less risky than Sinomach General. It trades about 0.0 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,194 in Sinomach General Machinery on September 1, 2024 and sell it today you would earn a total of 465.00 from holding Sinomach General Machinery or generate 38.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.45% |
| Values | Daily Returns |
Cinda Securities Co vs. Sinomach General Machinery
Performance |
| Timeline |
| Cinda Securities |
| Sinomach General Mac |
Cinda Securities and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Sinomach General
The main advantage of trading using opposite Cinda Securities and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities 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.| Cinda Securities vs. BeiGene | Cinda Securities vs. Kweichow Moutai Co | Cinda Securities vs. Beijing Roborock Technology | Cinda Securities vs. G bits Network Technology |
| Sinomach General vs. Everjoy Health Group | Sinomach General vs. FSPG Hi Tech Co | Sinomach General vs. Sichuan Jinshi Technology | Sinomach General vs. Guangdong Shenglu Telecommunication |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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