Correlation Between Sincere Navigation and Li Peng
Can any of the company-specific risk be diversified away by investing in both Sincere Navigation and Li Peng 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 Li Peng 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 Li Peng Enterprise, you can compare the effects of market volatilities on Sincere Navigation and Li Peng 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 Li Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sincere Navigation and Li Peng.
Diversification Opportunities for Sincere Navigation and Li Peng
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sincere and 1447 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sincere Navigation Corp and Li Peng Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Li Peng Enterprise 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 Li Peng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Li Peng Enterprise has no effect on the direction of Sincere Navigation i.e., Sincere Navigation and Li Peng go up and down completely randomly.
Pair Corralation between Sincere Navigation and Li Peng
Assuming the 90 days trading horizon Sincere Navigation Corp is expected to generate 0.9 times more return on investment than Li Peng. However, Sincere Navigation Corp is 1.12 times less risky than Li Peng. It trades about 0.02 of its potential returns per unit of risk. Li Peng Enterprise is currently generating about -0.04 per unit of risk. If you would invest 2,625 in Sincere Navigation Corp on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Sincere Navigation Corp or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sincere Navigation Corp vs. Li Peng Enterprise
Performance |
| Timeline |
| Sincere Navigation Corp |
| Li Peng Enterprise |
Sincere Navigation and Li Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sincere Navigation and Li Peng
The main advantage of trading using opposite Sincere Navigation and Li Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sincere Navigation position performs unexpectedly, Li Peng 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 Li Peng will offset losses from the drop in Li Peng'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 |
| Li Peng vs. China Mobile | Li Peng vs. Shan Loong Transportation Co | Li Peng vs. Tainet Communication System | Li Peng vs. China Metal Products |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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