Correlation Between 5I5j Holding and Shengtak New
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By analyzing existing cross correlation between 5I5j Holding Group and Shengtak New Material, you can compare the effects of market volatilities on 5I5j Holding and Shengtak New 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 5I5j Holding with a short position of Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of 5I5j Holding and Shengtak New.
Diversification Opportunities for 5I5j Holding and Shengtak New
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 5I5j and Shengtak is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding 5I5j Holding Group and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material and 5I5j Holding 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 5I5j Holding Group are associated (or correlated) with Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of 5I5j Holding i.e., 5I5j Holding and Shengtak New go up and down completely randomly.
Pair Corralation between 5I5j Holding and Shengtak New
Assuming the 90 days trading horizon 5I5j Holding Group is expected to generate 1.07 times more return on investment than Shengtak New. However, 5I5j Holding is 1.07 times more volatile than Shengtak New Material. It trades about 0.03 of its potential returns per unit of risk. Shengtak New Material is currently generating about 0.02 per unit of risk. If you would invest 263.00 in 5I5j Holding Group on September 28, 2024 and sell it today you would earn a total of 59.00 from holding 5I5j Holding Group or generate 22.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
5I5j Holding Group vs. Shengtak New Material
Performance |
| Timeline |
| 5I5j Holding Group |
| Shengtak New Material |
5I5j Holding and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 5I5j Holding and Shengtak New
The main advantage of trading using opposite 5I5j Holding and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 5I5j Holding position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| 5I5j Holding vs. Industrial and Commercial | 5I5j Holding vs. Agricultural Bank of | 5I5j Holding vs. China Construction Bank | 5I5j Holding vs. Bank of China |
| Shengtak New vs. Peoples Insurance of | Shengtak New vs. Anhui Deli Household | Shengtak New vs. Harvest Fund Management | Shengtak New vs. Marssenger Kitchenware Co |
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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