Correlation Between Amulaire Thermal and Song Ho
Can any of the company-specific risk be diversified away by investing in both Amulaire Thermal and Song Ho 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 Amulaire Thermal and Song Ho into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amulaire Thermal Technology and Song Ho Industrial, you can compare the effects of market volatilities on Amulaire Thermal and Song Ho 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 Amulaire Thermal with a short position of Song Ho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amulaire Thermal and Song Ho.
Diversification Opportunities for Amulaire Thermal and Song Ho
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amulaire and Song is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Amulaire Thermal Technology and Song Ho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Song Ho Industrial and Amulaire Thermal 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 Amulaire Thermal Technology are associated (or correlated) with Song Ho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Song Ho Industrial has no effect on the direction of Amulaire Thermal i.e., Amulaire Thermal and Song Ho go up and down completely randomly.
Pair Corralation between Amulaire Thermal and Song Ho
Assuming the 90 days trading horizon Amulaire Thermal Technology is expected to under-perform the Song Ho. In addition to that, Amulaire Thermal is 5.22 times more volatile than Song Ho Industrial. It trades about -0.1 of its total potential returns per unit of risk. Song Ho Industrial is currently generating about -0.03 per unit of volatility. If you would invest 2,825 in Song Ho Industrial on October 13, 2024 and sell it today you would lose (65.00) from holding Song Ho Industrial or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amulaire Thermal Technology vs. Song Ho Industrial
Performance |
| Timeline |
| Amulaire Thermal Tec |
| Song Ho Industrial |
Amulaire Thermal and Song Ho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amulaire Thermal and Song Ho
The main advantage of trading using opposite Amulaire Thermal and Song Ho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amulaire Thermal position performs unexpectedly, Song Ho 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 Song Ho will offset losses from the drop in Song Ho's long position.| Amulaire Thermal vs. Kenda Rubber Industrial | Amulaire Thermal vs. Cub Elecparts | Amulaire Thermal vs. Hota Industrial Mfg | Amulaire Thermal vs. Actron Technology |
| Song Ho vs. Amulaire Thermal Technology | Song Ho vs. Lihtai Construction Enterprise | Song Ho vs. Microelectronics Technology | Song Ho vs. Sunspring Metal 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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