Correlation Between Siward Crystal and C Sun
Can any of the company-specific risk be diversified away by investing in both Siward Crystal and C Sun 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 Siward Crystal and C Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siward Crystal Technology and C Sun Manufacturing, you can compare the effects of market volatilities on Siward Crystal and C Sun 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 Siward Crystal with a short position of C Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siward Crystal and C Sun.
Diversification Opportunities for Siward Crystal and C Sun
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siward and 2467 is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Siward Crystal Technology and C Sun Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C Sun Manufacturing and Siward Crystal 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 Siward Crystal Technology are associated (or correlated) with C Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C Sun Manufacturing has no effect on the direction of Siward Crystal i.e., Siward Crystal and C Sun go up and down completely randomly.
Pair Corralation between Siward Crystal and C Sun
Assuming the 90 days trading horizon Siward Crystal Technology is expected to under-perform the C Sun. But the stock apears to be less risky and, when comparing its historical volatility, Siward Crystal Technology is 2.6 times less risky than C Sun. The stock trades about -0.05 of its potential returns per unit of risk. The C Sun Manufacturing is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,190 in C Sun Manufacturing on September 1, 2024 and sell it today you would earn a total of 14,710 from holding C Sun Manufacturing or generate 283.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siward Crystal Technology vs. C Sun Manufacturing
Performance |
| Timeline |
| Siward Crystal Technology |
| C Sun Manufacturing |
Siward Crystal and C Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siward Crystal and C Sun
The main advantage of trading using opposite Siward Crystal and C Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siward Crystal position performs unexpectedly, C Sun 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 C Sun will offset losses from the drop in C Sun's long position.The idea behind Siward Crystal Technology and C Sun Manufacturing 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.| C Sun vs. BES Engineering Co | C Sun vs. Continental Holdings Corp | C Sun vs. Kee Tai Properties | C Sun 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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