Correlation Between Poly Real and Sinomach Automobile
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By analyzing existing cross correlation between Poly Real Estate and Sinomach Automobile Co, you can compare the effects of market volatilities on Poly Real and Sinomach Automobile 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 Poly Real with a short position of Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and Sinomach Automobile.
Diversification Opportunities for Poly Real and Sinomach Automobile
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Poly and Sinomach is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile and Poly Real 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 Poly Real Estate are associated (or correlated) with Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Poly Real i.e., Poly Real and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Poly Real and Sinomach Automobile
Assuming the 90 days trading horizon Poly Real Estate is expected to generate 1.22 times more return on investment than Sinomach Automobile. However, Poly Real is 1.22 times more volatile than Sinomach Automobile Co. It trades about 0.16 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about 0.15 per unit of risk. If you would invest 754.00 in Poly Real Estate on September 7, 2024 and sell it today you would earn a total of 251.00 from holding Poly Real Estate or generate 33.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Poly Real Estate vs. Sinomach Automobile Co
Performance |
Timeline |
Poly Real Estate |
Sinomach Automobile |
Poly Real and Sinomach Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Poly Real and Sinomach Automobile
The main advantage of trading using opposite Poly Real and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real position performs unexpectedly, Sinomach Automobile 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 Automobile will offset losses from the drop in Sinomach Automobile's long position.Poly Real vs. Hubeiyichang Transportation Group | Poly Real vs. China Aluminum International | Poly Real vs. Guangdong Jingyi Metal | Poly Real vs. Hainan Haiqi Transportation |
Sinomach Automobile vs. Guangdong Shenglu Telecommunication | Sinomach Automobile vs. Hunan Mendale Hometextile | Sinomach Automobile vs. Oppein Home Group | Sinomach Automobile vs. Vohringer Home Technology |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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