Correlation Between SI TECH and Shengtak New
Specify exactly 2 symbols:
By analyzing existing cross correlation between SI TECH Information Technology and Shengtak New Material, you can compare the effects of market volatilities on SI TECH and Shengtak New 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 SI TECH with a short position of Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of SI TECH and Shengtak New.
Diversification Opportunities for SI TECH and Shengtak New
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 300608 and Shengtak is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding SI TECH Information Technology and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material and SI TECH 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 SI TECH Information Technology are associated (or correlated) with Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of SI TECH i.e., SI TECH and Shengtak New go up and down completely randomly.
Pair Corralation between SI TECH and Shengtak New
Assuming the 90 days trading horizon SI TECH Information Technology is expected to generate 1.25 times more return on investment than Shengtak New. However, SI TECH is 1.25 times more volatile than Shengtak New Material. It trades about 0.03 of its potential returns per unit of risk. Shengtak New Material is currently generating about 0.02 per unit of risk. If you would invest 861.00 in SI TECH Information Technology on September 28, 2024 and sell it today you would earn a total of 255.00 from holding SI TECH Information Technology or generate 29.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SI TECH Information Technology vs. Shengtak New Material
Performance |
| Timeline |
| SI TECH Information |
| Shengtak New Material |
SI TECH and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SI TECH and Shengtak New
The main advantage of trading using opposite SI TECH and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SI TECH position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| SI TECH vs. Kweichow Moutai Co | SI TECH vs. Shenzhen Mindray Bio Medical | SI TECH vs. Jiangsu Pacific Quartz | SI TECH vs. G bits Network Technology |
| Shengtak New vs. Peoples Insurance of | Shengtak New vs. Anhui Deli Household | Shengtak New vs. Harvest Fund Management | Shengtak New vs. Marssenger Kitchenware Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |