Correlation Between Sichuan Yahua and SG Micro
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By analyzing existing cross correlation between Sichuan Yahua Industrial and SG Micro Corp, you can compare the effects of market volatilities on Sichuan Yahua and SG Micro 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 Sichuan Yahua with a short position of SG Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and SG Micro.
Diversification Opportunities for Sichuan Yahua and SG Micro
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and 300661 is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and SG Micro Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SG Micro Corp and Sichuan Yahua 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 Sichuan Yahua Industrial are associated (or correlated) with SG Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SG Micro Corp has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and SG Micro go up and down completely randomly.
Pair Corralation between Sichuan Yahua and SG Micro
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.35 times more return on investment than SG Micro. However, Sichuan Yahua is 1.35 times more volatile than SG Micro Corp. It trades about 0.26 of its potential returns per unit of risk. SG Micro Corp is currently generating about -0.07 per unit of risk. If you would invest 1,146 in Sichuan Yahua Industrial on September 15, 2024 and sell it today you would earn a total of 201.00 from holding Sichuan Yahua Industrial or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. SG Micro Corp
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| SG Micro Corp |
Sichuan Yahua and SG Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and SG Micro
The main advantage of trading using opposite Sichuan Yahua and SG Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, SG Micro 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 SG Micro will offset losses from the drop in SG Micro's long position.| Sichuan Yahua vs. Zijin Mining Group | Sichuan Yahua vs. Wanhua Chemical Group | Sichuan Yahua vs. Baoshan Iron Steel | Sichuan Yahua vs. Shandong Gold Mining |
| SG Micro vs. Hengkang Medical Group | SG Micro vs. Guangdong Jingyi Metal | SG Micro vs. Tibet Huayu Mining | SG Micro vs. Sichuan Yahua Industrial |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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