Correlation Between SS TECH and STCube
Can any of the company-specific risk be diversified away by investing in both SS TECH and STCube 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 SS TECH and STCube into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SS TECH and STCube Inc, you can compare the effects of market volatilities on SS TECH and STCube 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 SS TECH with a short position of STCube. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS TECH and STCube.
Diversification Opportunities for SS TECH and STCube
Good diversification
The 3 months correlation between 101490 and STCube is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SS TECH and STCube Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STCube Inc and SS TECH 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 SS TECH are associated (or correlated) with STCube. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STCube Inc has no effect on the direction of SS TECH i.e., SS TECH and STCube go up and down completely randomly.
Pair Corralation between SS TECH and STCube
Assuming the 90 days trading horizon SS TECH is expected to generate 0.67 times more return on investment than STCube. However, SS TECH is 1.49 times less risky than STCube. It trades about 0.02 of its potential returns per unit of risk. STCube Inc is currently generating about 0.0 per unit of risk. If you would invest 2,576,386 in SS TECH on September 14, 2024 and sell it today you would earn a total of 43,614 from holding SS TECH or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
SS TECH vs. STCube Inc
Performance |
| Timeline |
| SS TECH |
| STCube Inc |
SS TECH and STCube Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS TECH and STCube
The main advantage of trading using opposite SS TECH and STCube positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS TECH position performs unexpectedly, STCube 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 STCube will offset losses from the drop in STCube's long position.The idea behind SS TECH and STCube Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| STCube vs. Sangsangin Investment Securities | STCube vs. Aprogen Healthcare Games | STCube vs. SS TECH | STCube vs. Lion Chemtech Co |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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