Correlation Between Sangsin Energy and Phoenix Materials
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and Phoenix Materials 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 Sangsin Energy and Phoenix Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsin Energy Display and Phoenix Materials Co, you can compare the effects of market volatilities on Sangsin Energy and Phoenix Materials 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 Sangsin Energy with a short position of Phoenix Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and Phoenix Materials.
Diversification Opportunities for Sangsin Energy and Phoenix Materials
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sangsin and Phoenix is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and Phoenix Materials Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Materials and Sangsin Energy 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 Sangsin Energy Display are associated (or correlated) with Phoenix Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Materials has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and Phoenix Materials go up and down completely randomly.
Pair Corralation between Sangsin Energy and Phoenix Materials
Assuming the 90 days trading horizon Sangsin Energy is expected to generate 1.03 times less return on investment than Phoenix Materials. But when comparing it to its historical volatility, Sangsin Energy Display is 1.25 times less risky than Phoenix Materials. It trades about 0.26 of its potential returns per unit of risk. Phoenix Materials Co is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 64,700 in Phoenix Materials Co on October 11, 2024 and sell it today you would earn a total of 9,500 from holding Phoenix Materials Co or generate 14.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. Phoenix Materials Co
Performance |
| Timeline |
| Sangsin Energy Display |
| Phoenix Materials |
Sangsin Energy and Phoenix Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and Phoenix Materials
The main advantage of trading using opposite Sangsin Energy and Phoenix Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, Phoenix Materials 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 Phoenix Materials will offset losses from the drop in Phoenix Materials' long position.| Sangsin Energy vs. Coloray International Investment | Sangsin Energy vs. PLAYWITH | Sangsin Energy vs. Display Tech Co | Sangsin Energy vs. Nh Investment And |
| Phoenix Materials vs. DSC Investment | Phoenix Materials vs. Polaris Office Corp | Phoenix Materials vs. Golden Bridge Investment | Phoenix Materials vs. Sangsin Energy Display |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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