Correlation Between SGSG Sciencetechnolog and China Minsheng
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By analyzing existing cross correlation between SGSG Sciencetechnology Co and China Minsheng Banking, you can compare the effects of market volatilities on SGSG Sciencetechnolog and China Minsheng 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 SGSG Sciencetechnolog with a short position of China Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of SGSG Sciencetechnolog and China Minsheng.
Diversification Opportunities for SGSG Sciencetechnolog and China Minsheng
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SGSG and China is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding SGSG Sciencetechnology Co and China Minsheng Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minsheng Banking and SGSG Sciencetechnolog 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 SGSG Sciencetechnology Co are associated (or correlated) with China Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minsheng Banking has no effect on the direction of SGSG Sciencetechnolog i.e., SGSG Sciencetechnolog and China Minsheng go up and down completely randomly.
Pair Corralation between SGSG Sciencetechnolog and China Minsheng
Assuming the 90 days trading horizon SGSG Sciencetechnology Co is expected to generate 4.88 times more return on investment than China Minsheng. However, SGSG Sciencetechnolog is 4.88 times more volatile than China Minsheng Banking. It trades about 0.15 of its potential returns per unit of risk. China Minsheng Banking is currently generating about 0.02 per unit of risk. If you would invest 816.00 in SGSG Sciencetechnology Co on November 5, 2024 and sell it today you would earn a total of 4,142 from holding SGSG Sciencetechnology Co or generate 507.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SGSG Sciencetechnology Co vs. China Minsheng Banking
Performance |
| Timeline |
| SGSG Sciencetechnology |
| China Minsheng Banking |
SGSG Sciencetechnolog and China Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SGSG Sciencetechnolog and China Minsheng
The main advantage of trading using opposite SGSG Sciencetechnolog and China Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SGSG Sciencetechnolog position performs unexpectedly, China Minsheng 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 China Minsheng will offset losses from the drop in China Minsheng's long position.| SGSG Sciencetechnolog vs. Huaxia Fund Management | SGSG Sciencetechnolog vs. Chengdu Spaceon Electronics | SGSG Sciencetechnolog vs. Tongyu Communication | SGSG Sciencetechnolog vs. AVIC Fund Management |
| China Minsheng vs. Xiangpiaopiao Food Co | China Minsheng vs. Namchow Food Group | China Minsheng vs. Yankershop Food Co | China Minsheng vs. Jiujiang Shanshui Technology |
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.
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