Correlation Between Xingguang Agricultural and Sinomach General
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xingguang Agricultural Mach and Sinomach General Machinery, you can compare the effects of market volatilities on Xingguang Agricultural 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 Xingguang Agricultural with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xingguang Agricultural and Sinomach General.
Diversification Opportunities for Xingguang Agricultural and Sinomach General
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xingguang and Sinomach is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Xingguang Agricultural Mach 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 Xingguang Agricultural 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 Xingguang Agricultural Mach 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 Xingguang Agricultural i.e., Xingguang Agricultural and Sinomach General go up and down completely randomly.
Pair Corralation between Xingguang Agricultural and Sinomach General
Assuming the 90 days trading horizon Xingguang Agricultural Mach is expected to under-perform the Sinomach General. In addition to that, Xingguang Agricultural is 1.45 times more volatile than Sinomach General Machinery. It trades about -0.29 of its total potential returns per unit of risk. Sinomach General Machinery is currently generating about -0.04 per unit of volatility. If you would invest 1,525 in Sinomach General Machinery on October 22, 2024 and sell it today you would lose (31.00) from holding Sinomach General Machinery or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xingguang Agricultural Mach vs. Sinomach General Machinery
Performance |
| Timeline |
| Xingguang Agricultural |
| Sinomach General Mac |
Xingguang Agricultural and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xingguang Agricultural and Sinomach General
The main advantage of trading using opposite Xingguang Agricultural and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xingguang Agricultural 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.| Xingguang Agricultural vs. Unisplendour Corp | Xingguang Agricultural vs. Shanghai V Test Semiconductor | Xingguang Agricultural vs. Union Semiconductor Co | Xingguang Agricultural vs. Panda Financial Holding |
| Sinomach General vs. Jahen Household Products | Sinomach General vs. Pengxin International Mining | Sinomach General vs. Xinjiang Baodi Mining | Sinomach General vs. Shandong Polymer Biochemicals |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |