Correlation Between SanDi Properties and Amtran Technology
Can any of the company-specific risk be diversified away by investing in both SanDi Properties and Amtran Technology 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 SanDi Properties and Amtran Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SanDi Properties Co and Amtran Technology Co, you can compare the effects of market volatilities on SanDi Properties and Amtran Technology 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 SanDi Properties with a short position of Amtran Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SanDi Properties and Amtran Technology.
Diversification Opportunities for SanDi Properties and Amtran Technology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SanDi and Amtran is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding SanDi Properties Co and Amtran Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtran Technology and SanDi Properties 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 SanDi Properties Co are associated (or correlated) with Amtran Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtran Technology has no effect on the direction of SanDi Properties i.e., SanDi Properties and Amtran Technology go up and down completely randomly.
Pair Corralation between SanDi Properties and Amtran Technology
Assuming the 90 days trading horizon SanDi Properties Co is expected to generate 1.17 times more return on investment than Amtran Technology. However, SanDi Properties is 1.17 times more volatile than Amtran Technology Co. It trades about 0.0 of its potential returns per unit of risk. Amtran Technology Co is currently generating about 0.0 per unit of risk. If you would invest 6,030 in SanDi Properties Co on August 30, 2024 and sell it today you would lose (480.00) from holding SanDi Properties Co or give up 7.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SanDi Properties Co vs. Amtran Technology Co
Performance |
| Timeline |
| SanDi Properties |
| Amtran Technology |
SanDi Properties and Amtran Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SanDi Properties and Amtran Technology
The main advantage of trading using opposite SanDi Properties and Amtran Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SanDi Properties position performs unexpectedly, Amtran Technology 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 Amtran Technology will offset losses from the drop in Amtran Technology's long position.| SanDi Properties vs. Yulon Motor Co | SanDi Properties vs. Far Eastern Department | SanDi Properties vs. China Steel Corp | SanDi Properties vs. Chang Hwa Commercial |
| Amtran Technology vs. Yulon Finance Corp | Amtran Technology vs. Taiwan Secom Co | Amtran Technology vs. Great Wall Enterprise |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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