Correlation Between Shengtak New and Xinya Electronic
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By analyzing existing cross correlation between Shengtak New Material and Xinya Electronic Co, you can compare the effects of market volatilities on Shengtak New and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shengtak New and Xinya Electronic.
Diversification Opportunities for Shengtak New and Xinya Electronic
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shengtak and Xinya is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shengtak New Material and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Shengtak New i.e., Shengtak New and Xinya Electronic go up and down completely randomly.
Pair Corralation between Shengtak New and Xinya Electronic
Assuming the 90 days trading horizon Shengtak New Material is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Shengtak New Material is 1.59 times less risky than Xinya Electronic. The stock trades about -0.06 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,324 in Xinya Electronic Co on September 27, 2024 and sell it today you would earn a total of 253.00 from holding Xinya Electronic Co or generate 19.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shengtak New Material vs. Xinya Electronic Co
Performance |
| Timeline |
| Shengtak New Material |
| Xinya Electronic |
Shengtak New and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shengtak New and Xinya Electronic
The main advantage of trading using opposite Shengtak New and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shengtak New position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Shengtak New vs. Wanhua Chemical Group | Shengtak New vs. Shandong Gold Mining | Shengtak New vs. Rongsheng Petrochemical Co | Shengtak New vs. Inner Mongolia BaoTou |
| Xinya Electronic vs. Shengtak New Material | Xinya Electronic vs. Ningxia Building Materials | Xinya Electronic vs. Jiugui Liquor Co | Xinya Electronic vs. Shenzhen SDG Information |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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