Correlation Between Dongxing Sec and Sinomach General
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By analyzing existing cross correlation between Dongxing Sec Co and Sinomach General Machinery, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Sinomach General.
Diversification Opportunities for Dongxing Sec and Sinomach General
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongxing and Sinomach is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec i.e., Dongxing Sec and Sinomach General go up and down completely randomly.
Pair Corralation between Dongxing Sec and Sinomach General
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.85 times more return on investment than Sinomach General. However, Dongxing Sec Co is 1.18 times less risky than Sinomach General. It trades about 0.1 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.08 per unit of risk. If you would invest 829.00 in Dongxing Sec Co on September 1, 2024 and sell it today you would earn a total of 309.00 from holding Dongxing Sec Co or generate 37.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Sinomach General Machinery
Performance |
| Timeline |
| Dongxing Sec |
| Sinomach General Mac |
Dongxing Sec and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Sinomach General
The main advantage of trading using opposite Dongxing Sec and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. BeiGene | Dongxing Sec vs. Kweichow Moutai Co | Dongxing Sec vs. Beijing Roborock Technology | Dongxing Sec 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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