Correlation Between Soyea Technology and China Asset
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By analyzing existing cross correlation between Soyea Technology Co and China Asset Management, you can compare the effects of market volatilities on Soyea Technology and China Asset 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 Soyea Technology with a short position of China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soyea Technology and China Asset.
Diversification Opportunities for Soyea Technology and China Asset
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Soyea and China is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Soyea Technology Co and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management and Soyea Technology 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 Soyea Technology Co are associated (or correlated) with China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Soyea Technology i.e., Soyea Technology and China Asset go up and down completely randomly.
Pair Corralation between Soyea Technology and China Asset
Assuming the 90 days trading horizon Soyea Technology Co is expected to under-perform the China Asset. In addition to that, Soyea Technology is 3.03 times more volatile than China Asset Management. It trades about -0.52 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.47 per unit of volatility. If you would invest 345.00 in China Asset Management on October 14, 2024 and sell it today you would earn a total of 32.00 from holding China Asset Management or generate 9.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soyea Technology Co vs. China Asset Management
Performance |
| Timeline |
| Soyea Technology |
| China Asset Management |
Soyea Technology and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soyea Technology and China Asset
The main advantage of trading using opposite Soyea Technology and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soyea Technology position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Soyea Technology vs. Sportsoul Co Ltd | Soyea Technology vs. Jiangsu Jinling Sports | Soyea Technology vs. Shanghai Yaoji Playing | Soyea Technology vs. Meinian Onehealth Healthcare |
| China Asset vs. PKU HealthCare Corp | China Asset vs. Heren Health Co | China Asset vs. Soyea Technology Co | China Asset vs. Shandong Sinoglory Health |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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