Correlation Between Anhui Transport and Sinomach General
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By analyzing existing cross correlation between Anhui Transport Consulting and Sinomach General Machinery, you can compare the effects of market volatilities on Anhui Transport 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 Anhui Transport with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Sinomach General.
Diversification Opportunities for Anhui Transport and Sinomach General
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Sinomach is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting 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 Anhui Transport 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 Anhui Transport Consulting 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 Anhui Transport i.e., Anhui Transport and Sinomach General go up and down completely randomly.
Pair Corralation between Anhui Transport and Sinomach General
Assuming the 90 days trading horizon Anhui Transport is expected to generate 5.36 times less return on investment than Sinomach General. But when comparing it to its historical volatility, Anhui Transport Consulting is 1.75 times less risky than Sinomach General. It trades about 0.02 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,546 in Sinomach General Machinery on August 26, 2024 and sell it today you would earn a total of 60.00 from holding Sinomach General Machinery or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Sinomach General Machinery
Performance |
| Timeline |
| Anhui Transport Cons |
| Sinomach General Mac |
Anhui Transport and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Sinomach General
The main advantage of trading using opposite Anhui Transport and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport 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.| Anhui Transport vs. Agricultural Bank of | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. Bank of China | Anhui Transport vs. China Construction Bank |
| Sinomach General vs. Agricultural Bank of | Sinomach General vs. Industrial and Commercial | Sinomach General vs. Bank of China | Sinomach General vs. China Construction Bank |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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