Correlation Between C Sun and G Shank
Can any of the company-specific risk be diversified away by investing in both C Sun and G Shank 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 C Sun and G Shank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C Sun Manufacturing and G Shank Enterprise Co, you can compare the effects of market volatilities on C Sun and G Shank 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 C Sun with a short position of G Shank. Check out your portfolio center. Please also check ongoing floating volatility patterns of C Sun and G Shank.
Diversification Opportunities for C Sun and G Shank
Very weak diversification
The 3 months correlation between 2467 and 2476 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding C Sun Manufacturing and G Shank Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Shank Enterprise and C Sun 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 C Sun Manufacturing are associated (or correlated) with G Shank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Shank Enterprise has no effect on the direction of C Sun i.e., C Sun and G Shank go up and down completely randomly.
Pair Corralation between C Sun and G Shank
Assuming the 90 days trading horizon C Sun Manufacturing is expected to generate 1.49 times more return on investment than G Shank. However, C Sun is 1.49 times more volatile than G Shank Enterprise Co. It trades about -0.06 of its potential returns per unit of risk. G Shank Enterprise Co is currently generating about -0.14 per unit of risk. If you would invest 23,000 in C Sun Manufacturing on September 2, 2024 and sell it today you would lose (3,100) from holding C Sun Manufacturing or give up 13.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
C Sun Manufacturing vs. G Shank Enterprise Co
Performance |
| Timeline |
| C Sun Manufacturing |
| G Shank Enterprise |
C Sun and G Shank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C Sun and G Shank
The main advantage of trading using opposite C Sun and G Shank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C Sun position performs unexpectedly, G Shank 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 G Shank will offset losses from the drop in G Shank's long position.| C Sun vs. BES Engineering Co | C Sun vs. Continental Holdings Corp | C Sun vs. Kee Tai Properties | C Sun vs. Hung Sheng Construction |
| G Shank vs. BES Engineering Co | G Shank vs. Continental Holdings Corp | G Shank vs. Kee Tai Properties | G Shank vs. Hung Sheng Construction |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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