Correlation Between SOGECLAIR and ZhongAn Online
Can any of the company-specific risk be diversified away by investing in both SOGECLAIR and ZhongAn Online 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 SOGECLAIR and ZhongAn Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOGECLAIR SA INH and ZhongAn Online P, you can compare the effects of market volatilities on SOGECLAIR and ZhongAn Online 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 SOGECLAIR with a short position of ZhongAn Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOGECLAIR and ZhongAn Online.
Diversification Opportunities for SOGECLAIR and ZhongAn Online
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SOGECLAIR and ZhongAn is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding SOGECLAIR SA INH and ZhongAn Online P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZhongAn Online P and SOGECLAIR 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 SOGECLAIR SA INH are associated (or correlated) with ZhongAn Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZhongAn Online P has no effect on the direction of SOGECLAIR i.e., SOGECLAIR and ZhongAn Online go up and down completely randomly.
Pair Corralation between SOGECLAIR and ZhongAn Online
Assuming the 90 days horizon SOGECLAIR SA INH is expected to under-perform the ZhongAn Online. But the stock apears to be less risky and, when comparing its historical volatility, SOGECLAIR SA INH is 1.81 times less risky than ZhongAn Online. The stock trades about -0.06 of its potential returns per unit of risk. The ZhongAn Online P is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 148.00 in ZhongAn Online P on November 3, 2024 and sell it today you would earn a total of 4.00 from holding ZhongAn Online P or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOGECLAIR SA INH vs. ZhongAn Online P
Performance |
| Timeline |
| SOGECLAIR SA INH |
| ZhongAn Online P |
SOGECLAIR and ZhongAn Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOGECLAIR and ZhongAn Online
The main advantage of trading using opposite SOGECLAIR and ZhongAn Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOGECLAIR position performs unexpectedly, ZhongAn Online 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 ZhongAn Online will offset losses from the drop in ZhongAn Online's long position.| SOGECLAIR vs. CANON MARKETING JP | SOGECLAIR vs. CARSALESCOM | SOGECLAIR vs. Firan Technology Group | SOGECLAIR vs. Canon Marketing Japan |
| ZhongAn Online vs. Canadian Utilities Limited | ZhongAn Online vs. Tianjin Capital Environmental | ZhongAn Online vs. Nippon Steel | ZhongAn Online vs. United Utilities Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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