Correlation Between Shengtak New and China Asset
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By analyzing existing cross correlation between Shengtak New Material and China Asset Management, you can compare the effects of market volatilities on Shengtak New and China Asset 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 Shengtak New with a short position of China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengtak New and China Asset.
Diversification Opportunities for Shengtak New and China Asset
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shengtak and China is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Shengtak New Material and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management and Shengtak New 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 Shengtak New Material are associated (or correlated) with China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Shengtak New i.e., Shengtak New and China Asset go up and down completely randomly.
Pair Corralation between Shengtak New and China Asset
Assuming the 90 days trading horizon Shengtak New is expected to generate 3.27 times less return on investment than China Asset. In addition to that, Shengtak New is 2.19 times more volatile than China Asset Management. It trades about 0.07 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.47 per unit of volatility. If you would invest 349.00 in China Asset Management on October 18, 2024 and sell it today you would earn a total of 31.00 from holding China Asset Management or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengtak New Material vs. China Asset Management
Performance |
| Timeline |
| Shengtak New Material |
| China Asset Management |
Shengtak New and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengtak New and China Asset
The main advantage of trading using opposite Shengtak New and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengtak New position performs unexpectedly, China Asset 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 Asset will offset losses from the drop in China Asset's long position.| Shengtak New vs. Changjiang Jinggong Steel | Shengtak New vs. 360 Security Technology | Shengtak New vs. Keeson Technology Corp | Shengtak New vs. Maxvision Technology Corp |
| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. PetroChina Co Ltd |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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