Correlation Between Sentronic International and Casing Macron
Can any of the company-specific risk be diversified away by investing in both Sentronic International and Casing Macron 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 Sentronic International and Casing Macron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sentronic International and Casing Macron Technology, you can compare the effects of market volatilities on Sentronic International and Casing Macron 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 Sentronic International with a short position of Casing Macron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sentronic International and Casing Macron.
Diversification Opportunities for Sentronic International and Casing Macron
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sentronic and Casing is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sentronic International and Casing Macron Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casing Macron Technology and Sentronic International 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 Sentronic International are associated (or correlated) with Casing Macron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casing Macron Technology has no effect on the direction of Sentronic International i.e., Sentronic International and Casing Macron go up and down completely randomly.
Pair Corralation between Sentronic International and Casing Macron
Assuming the 90 days trading horizon Sentronic International is expected to generate 0.83 times more return on investment than Casing Macron. However, Sentronic International is 1.21 times less risky than Casing Macron. It trades about 0.03 of its potential returns per unit of risk. Casing Macron Technology is currently generating about -0.06 per unit of risk. If you would invest 2,290 in Sentronic International on August 27, 2024 and sell it today you would earn a total of 315.00 from holding Sentronic International or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sentronic International vs. Casing Macron Technology
Performance |
| Timeline |
| Sentronic International |
| Casing Macron Technology |
Sentronic International and Casing Macron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sentronic International and Casing Macron
The main advantage of trading using opposite Sentronic International and Casing Macron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sentronic International position performs unexpectedly, Casing Macron 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 Casing Macron will offset losses from the drop in Casing Macron's long position.| Sentronic International vs. GrandTech CG Systems | Sentronic International vs. Answer Technology Co | Sentronic International vs. Xander International | Sentronic International vs. Weblink International |
| Casing Macron vs. GrandTech CG Systems | Casing Macron vs. Answer Technology Co | Casing Macron vs. Xander International | Casing Macron vs. Weblink International |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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