Correlation Between Sunspring Metal and SS Healthcare
Can any of the company-specific risk be diversified away by investing in both Sunspring Metal and SS Healthcare 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 Sunspring Metal and SS Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunspring Metal Corp and SS Healthcare Holding, you can compare the effects of market volatilities on Sunspring Metal and SS Healthcare 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 Sunspring Metal with a short position of SS Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunspring Metal and SS Healthcare.
Diversification Opportunities for Sunspring Metal and SS Healthcare
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sunspring and 4198 is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sunspring Metal Corp and SS Healthcare Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS Healthcare Holding and Sunspring Metal 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 Sunspring Metal Corp are associated (or correlated) with SS Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS Healthcare Holding has no effect on the direction of Sunspring Metal i.e., Sunspring Metal and SS Healthcare go up and down completely randomly.
Pair Corralation between Sunspring Metal and SS Healthcare
Assuming the 90 days trading horizon Sunspring Metal Corp is expected to generate 0.96 times more return on investment than SS Healthcare. However, Sunspring Metal Corp is 1.04 times less risky than SS Healthcare. It trades about 0.04 of its potential returns per unit of risk. SS Healthcare Holding is currently generating about -0.06 per unit of risk. If you would invest 2,960 in Sunspring Metal Corp on September 3, 2024 and sell it today you would earn a total of 365.00 from holding Sunspring Metal Corp or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunspring Metal Corp vs. SS Healthcare Holding
Performance |
| Timeline |
| Sunspring Metal Corp |
| SS Healthcare Holding |
Sunspring Metal and SS Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunspring Metal and SS Healthcare
The main advantage of trading using opposite Sunspring Metal and SS Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunspring Metal position performs unexpectedly, SS Healthcare 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 SS Healthcare will offset losses from the drop in SS Healthcare's long position.| Sunspring Metal vs. Universal Microelectronics Co | Sunspring Metal vs. AVerMedia Technologies | Sunspring Metal vs. Symtek Automation Asia | Sunspring Metal vs. WiseChip Semiconductor |
| SS Healthcare vs. Sunspring Metal Corp | SS Healthcare vs. WinMate Communication INC | SS Healthcare vs. Asia Metal Industries | SS Healthcare vs. RiTdisplay Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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