Correlation Between Sincere Navigation and Asia Polymer
Can any of the company-specific risk be diversified away by investing in both Sincere Navigation and Asia Polymer 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 Sincere Navigation and Asia Polymer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sincere Navigation Corp and Asia Polymer Corp, you can compare the effects of market volatilities on Sincere Navigation and Asia Polymer 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 Sincere Navigation with a short position of Asia Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sincere Navigation and Asia Polymer.
Diversification Opportunities for Sincere Navigation and Asia Polymer
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sincere and Asia is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sincere Navigation Corp and Asia Polymer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Polymer Corp and Sincere Navigation 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 Sincere Navigation Corp are associated (or correlated) with Asia Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Polymer Corp has no effect on the direction of Sincere Navigation i.e., Sincere Navigation and Asia Polymer go up and down completely randomly.
Pair Corralation between Sincere Navigation and Asia Polymer
Assuming the 90 days trading horizon Sincere Navigation Corp is expected to generate 1.09 times more return on investment than Asia Polymer. However, Sincere Navigation is 1.09 times more volatile than Asia Polymer Corp. It trades about 0.03 of its potential returns per unit of risk. Asia Polymer Corp is currently generating about -0.04 per unit of risk. If you would invest 2,410 in Sincere Navigation Corp on September 3, 2024 and sell it today you would earn a total of 225.00 from holding Sincere Navigation Corp or generate 9.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sincere Navigation Corp vs. Asia Polymer Corp
Performance |
| Timeline |
| Sincere Navigation Corp |
| Asia Polymer Corp |
Sincere Navigation and Asia Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sincere Navigation and Asia Polymer
The main advantage of trading using opposite Sincere Navigation and Asia Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sincere Navigation position performs unexpectedly, Asia Polymer 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 Asia Polymer will offset losses from the drop in Asia Polymer's long position.| Sincere Navigation vs. U Ming Marine Transport | Sincere Navigation vs. First Steamship Co | Sincere Navigation vs. Evergreen International Storage | Sincere Navigation vs. Wan Hai Lines |
| Asia Polymer vs. USI Corp | Asia Polymer vs. Taiwan Styrene Monomer | Asia Polymer vs. UPC Technology Corp | Asia Polymer vs. Grand Pacific Petrochemical |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |