Correlation Between 37 Interactive and SI TECH
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By analyzing existing cross correlation between 37 Interactive Entertainment and SI TECH Information Technology, you can compare the effects of market volatilities on 37 Interactive and SI TECH 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 37 Interactive with a short position of SI TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of 37 Interactive and SI TECH.
Diversification Opportunities for 37 Interactive and SI TECH
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 002555 and 300608 is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding 37 Interactive Entertainment and SI TECH Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SI TECH Information and 37 Interactive 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 37 Interactive Entertainment are associated (or correlated) with SI TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SI TECH Information has no effect on the direction of 37 Interactive i.e., 37 Interactive and SI TECH go up and down completely randomly.
Pair Corralation between 37 Interactive and SI TECH
Assuming the 90 days trading horizon 37 Interactive is expected to generate 6.68 times less return on investment than SI TECH. But when comparing it to its historical volatility, 37 Interactive Entertainment is 1.39 times less risky than SI TECH. It trades about 0.01 of its potential returns per unit of risk. SI TECH Information Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 861.00 in SI TECH Information Technology on September 28, 2024 and sell it today you would earn a total of 255.00 from holding SI TECH Information Technology or generate 29.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
37 Interactive Entertainment vs. SI TECH Information Technology
Performance |
| Timeline |
| 37 Interactive Enter |
| SI TECH Information |
37 Interactive and SI TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 37 Interactive and SI TECH
The main advantage of trading using opposite 37 Interactive and SI TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 37 Interactive position performs unexpectedly, SI TECH 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 SI TECH will offset losses from the drop in SI TECH's long position.| 37 Interactive vs. China Life Insurance | 37 Interactive vs. Cinda Securities Co | 37 Interactive vs. Piotech Inc A | 37 Interactive vs. Dongxing Sec Co |
| SI TECH vs. Kweichow Moutai Co | SI TECH vs. Shenzhen Mindray Bio Medical | SI TECH vs. Jiangsu Pacific Quartz | SI TECH vs. G bits Network 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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