Correlation Between 159005 and SAIC
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By analyzing existing cross correlation between 159005 and SAIC Motor Corp, you can compare the effects of market volatilities on 159005 and SAIC 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 159005 with a short position of SAIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and SAIC.
Diversification Opportunities for 159005 and SAIC
Poor diversification
The 3 months correlation between 159005 and SAIC is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and SAIC Motor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIC Motor Corp and 159005 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 159005 are associated (or correlated) with SAIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIC Motor Corp has no effect on the direction of 159005 i.e., 159005 and SAIC go up and down completely randomly.
Pair Corralation between 159005 and SAIC
Assuming the 90 days trading horizon 159005 is expected to generate 67.11 times less return on investment than SAIC. But when comparing it to its historical volatility, 159005 is 143.29 times less risky than SAIC. It trades about 0.21 of its potential returns per unit of risk. SAIC Motor Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,320 in SAIC Motor Corp on October 15, 2024 and sell it today you would earn a total of 307.00 from holding SAIC Motor Corp or generate 23.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. SAIC Motor Corp
Performance |
| Timeline |
| 159005 |
| SAIC Motor Corp |
159005 and SAIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and SAIC
The main advantage of trading using opposite 159005 and SAIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, SAIC 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 SAIC will offset losses from the drop in SAIC's long position.The idea behind 159005 and SAIC Motor Corp 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.| SAIC vs. Kontour Medical Technology | SAIC vs. Chongqing Shunbo Aluminum | SAIC vs. Winner Medical Co | SAIC vs. Eyebright Medical Technology |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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