Correlation Between SI TECH and China Enterprise
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By analyzing existing cross correlation between SI TECH Information Technology and China Enterprise Co, you can compare the effects of market volatilities on SI TECH and China Enterprise 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 China Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of SI TECH and China Enterprise.
Diversification Opportunities for SI TECH and China Enterprise
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 300608 and China is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding SI TECH Information Technology and China Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Enterprise 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 China Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Enterprise has no effect on the direction of SI TECH i.e., SI TECH and China Enterprise go up and down completely randomly.
Pair Corralation between SI TECH and China Enterprise
Assuming the 90 days trading horizon SI TECH Information Technology is expected to under-perform the China Enterprise. In addition to that, SI TECH is 1.25 times more volatile than China Enterprise Co. It trades about -0.12 of its total potential returns per unit of risk. China Enterprise Co is currently generating about -0.04 per unit of volatility. If you would invest 296.00 in China Enterprise Co on September 28, 2024 and sell it today you would lose (11.00) from holding China Enterprise Co or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SI TECH Information Technology vs. China Enterprise Co
Performance |
| Timeline |
| SI TECH Information |
| China Enterprise |
SI TECH and China Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SI TECH and China Enterprise
The main advantage of trading using opposite SI TECH and China Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SI TECH position performs unexpectedly, China Enterprise 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 Enterprise will offset losses from the drop in China Enterprise'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 |
| China Enterprise vs. INKON Life Technology | China Enterprise vs. Chahua Modern Housewares | China Enterprise vs. Anhui Deli Household | China Enterprise vs. China World Trade |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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