Correlation Between Beijing Roborock and Sinomach General
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By analyzing existing cross correlation between Beijing Roborock Technology and Sinomach General Machinery, you can compare the effects of market volatilities on Beijing Roborock 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 Beijing Roborock with a short position of Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Sinomach General.
Diversification Opportunities for Beijing Roborock and Sinomach General
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Sinomach is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology 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 Beijing Roborock 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 Beijing Roborock Technology 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 Beijing Roborock i.e., Beijing Roborock and Sinomach General go up and down completely randomly.
Pair Corralation between Beijing Roborock and Sinomach General
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to generate 1.17 times more return on investment than Sinomach General. However, Beijing Roborock is 1.17 times more volatile than Sinomach General Machinery. It trades about 0.02 of its potential returns per unit of risk. Sinomach General Machinery is currently generating about 0.02 per unit of risk. If you would invest 21,396 in Beijing Roborock Technology on October 10, 2024 and sell it today you would earn a total of 2,022 from holding Beijing Roborock Technology or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Sinomach General Machinery
Performance |
| Timeline |
| Beijing Roborock Tec |
| Sinomach General Mac |
Beijing Roborock and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Sinomach General
The main advantage of trading using opposite Beijing Roborock and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock 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.| Beijing Roborock vs. Shengda Mining Co | Beijing Roborock vs. Xinjiang Baodi Mining | Beijing Roborock vs. Tibet Huayu Mining | Beijing Roborock vs. Ye Chiu Metal |
| Sinomach General vs. Servyou Software Group | Sinomach General vs. Glodon Software Co | Sinomach General vs. Beijing Baolande Software | Sinomach General vs. Suofeiya Home Collection |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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