Correlation Between Piotech and Sinomach General
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By analyzing existing cross correlation between Piotech Inc A and Sinomach General Machinery, you can compare the effects of market volatilities on Piotech 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 Piotech with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Sinomach General.
Diversification Opportunities for Piotech and Sinomach General
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Piotech and Sinomach is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A 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 Piotech 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 Piotech Inc A 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 Piotech i.e., Piotech and Sinomach General go up and down completely randomly.
Pair Corralation between Piotech and Sinomach General
Assuming the 90 days trading horizon Piotech Inc A is expected to generate 1.22 times more return on investment than Sinomach General. However, Piotech is 1.22 times more volatile than Sinomach General Machinery. It trades about 0.1 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.07 per unit of risk. If you would invest 12,488 in Piotech Inc A on August 29, 2024 and sell it today you would earn a total of 6,502 from holding Piotech Inc A or generate 52.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Sinomach General Machinery
Performance |
| Timeline |
| Piotech Inc A |
| Sinomach General Mac |
Piotech and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Sinomach General
The main advantage of trading using opposite Piotech and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech 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.| Piotech vs. Everdisplay Optronics Shanghai | Piotech vs. Shanghai Jinfeng Wine | Piotech vs. State Grid InformationCommunication | Piotech vs. Citic Guoan Wine |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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