Correlation Between Sanichi Technology and Diversified Gateway
Can any of the company-specific risk be diversified away by investing in both Sanichi Technology and Diversified Gateway at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sanichi Technology and Diversified Gateway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanichi Technology Bhd and Diversified Gateway Solutions, you can compare the effects of market volatilities on Sanichi Technology and Diversified Gateway 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 Sanichi Technology with a short position of Diversified Gateway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanichi Technology and Diversified Gateway.
Diversification Opportunities for Sanichi Technology and Diversified Gateway
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sanichi and Diversified is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sanichi Technology Bhd and Diversified Gateway Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diversified Gateway and Sanichi 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 Sanichi Technology Bhd are associated (or correlated) with Diversified Gateway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diversified Gateway has no effect on the direction of Sanichi Technology i.e., Sanichi Technology and Diversified Gateway go up and down completely randomly.
Pair Corralation between Sanichi Technology and Diversified Gateway
Assuming the 90 days trading horizon Sanichi Technology Bhd is expected to generate 0.84 times more return on investment than Diversified Gateway. However, Sanichi Technology Bhd is 1.19 times less risky than Diversified Gateway. It trades about 0.02 of its potential returns per unit of risk. Diversified Gateway Solutions is currently generating about -0.08 per unit of risk. If you would invest 13.00 in Sanichi Technology Bhd on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Sanichi Technology Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanichi Technology Bhd vs. Diversified Gateway Solutions
Performance |
| Timeline |
| Sanichi Technology Bhd |
| Diversified Gateway |
Sanichi Technology and Diversified Gateway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanichi Technology and Diversified Gateway
The main advantage of trading using opposite Sanichi Technology and Diversified Gateway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanichi Technology position performs unexpectedly, Diversified Gateway 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 Diversified Gateway will offset losses from the drop in Diversified Gateway's long position.| Sanichi Technology vs. Malaysia Steel Works | Sanichi Technology vs. British American Tobacco | Sanichi Technology vs. Melewar Industrial Group | Sanichi Technology vs. Sapura Industrial Bhd |
| Diversified Gateway vs. Press Metal Bhd | Diversified Gateway vs. Kawan Food Bhd | Diversified Gateway vs. Choo Bee Metal | Diversified Gateway vs. Public Packages Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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