Correlation Between Channel Well and Singatron Enterprise
Can any of the company-specific risk be diversified away by investing in both Channel Well and Singatron Enterprise at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Channel Well and Singatron Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Channel Well Technology and Singatron Enterprise Co, you can compare the effects of market volatilities on Channel Well and Singatron 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 Channel Well with a short position of Singatron Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Channel Well and Singatron Enterprise.
Diversification Opportunities for Channel Well and Singatron Enterprise
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Channel and Singatron is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Channel Well Technology and Singatron Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singatron Enterprise and Channel Well 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 Channel Well Technology are associated (or correlated) with Singatron Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singatron Enterprise has no effect on the direction of Channel Well i.e., Channel Well and Singatron Enterprise go up and down completely randomly.
Pair Corralation between Channel Well and Singatron Enterprise
Assuming the 90 days trading horizon Channel Well Technology is expected to under-perform the Singatron Enterprise. In addition to that, Channel Well is 1.88 times more volatile than Singatron Enterprise Co. It trades about -0.1 of its total potential returns per unit of risk. Singatron Enterprise Co is currently generating about -0.15 per unit of volatility. If you would invest 2,775 in Singatron Enterprise Co on December 11, 2024 and sell it today you would lose (90.00) from holding Singatron Enterprise Co or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Channel Well Technology vs. Singatron Enterprise Co
Performance |
| Timeline |
| Channel Well Technology |
| Singatron Enterprise |
Channel Well and Singatron Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Channel Well and Singatron Enterprise
The main advantage of trading using opposite Channel Well and Singatron Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Channel Well position performs unexpectedly, Singatron 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 Singatron Enterprise will offset losses from the drop in Singatron Enterprise's long position.| Channel Well vs. Topco Scientific Co | Channel Well vs. Asia Vital Components | Channel Well vs. Ardentec | Channel Well vs. Adata Technology Co |
| Singatron Enterprise vs. XAC Automation | Singatron Enterprise vs. Kenmec Mechanical Engineering | Singatron Enterprise vs. Hwacom Systems | Singatron Enterprise vs. Plastron Precision 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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