Correlation Between Stic Investments and SNTEnergy
Can any of the company-specific risk be diversified away by investing in both Stic Investments and SNTEnergy 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 Stic Investments and SNTEnergy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and SNTEnergy Co, you can compare the effects of market volatilities on Stic Investments and SNTEnergy 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 Stic Investments with a short position of SNTEnergy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and SNTEnergy.
Diversification Opportunities for Stic Investments and SNTEnergy
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Stic and SNTEnergy is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and SNTEnergy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNTEnergy and Stic Investments 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 Stic Investments are associated (or correlated) with SNTEnergy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNTEnergy has no effect on the direction of Stic Investments i.e., Stic Investments and SNTEnergy go up and down completely randomly.
Pair Corralation between Stic Investments and SNTEnergy
Assuming the 90 days trading horizon Stic Investments is expected to generate 0.37 times more return on investment than SNTEnergy. However, Stic Investments is 2.73 times less risky than SNTEnergy. It trades about 0.42 of its potential returns per unit of risk. SNTEnergy Co is currently generating about 0.09 per unit of risk. If you would invest 737,000 in Stic Investments on September 13, 2024 and sell it today you would earn a total of 149,000 from holding Stic Investments or generate 20.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Stic Investments vs. SNTEnergy Co
Performance |
| Timeline |
| Stic Investments |
| SNTEnergy |
Stic Investments and SNTEnergy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and SNTEnergy
The main advantage of trading using opposite Stic Investments and SNTEnergy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, SNTEnergy 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 SNTEnergy will offset losses from the drop in SNTEnergy's long position.| Stic Investments vs. Cube Entertainment | Stic Investments vs. Dreamus Company | Stic Investments vs. LG Energy Solution | Stic Investments vs. Dongwon System |
| SNTEnergy vs. LG Energy Solution | SNTEnergy vs. Doosan Heavy Ind | SNTEnergy vs. Hyosung Heavy Industries | SNTEnergy vs. Aprogen KIC |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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