Correlation Between Celxpert Energy and San Fu
Can any of the company-specific risk be diversified away by investing in both Celxpert Energy and San Fu 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 Celxpert Energy and San Fu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celxpert Energy and San Fu Chemical, you can compare the effects of market volatilities on Celxpert Energy and San Fu 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 Celxpert Energy with a short position of San Fu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celxpert Energy and San Fu.
Diversification Opportunities for Celxpert Energy and San Fu
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Celxpert and San is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Celxpert Energy and San Fu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Fu Chemical and Celxpert Energy 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 Celxpert Energy are associated (or correlated) with San Fu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Fu Chemical has no effect on the direction of Celxpert Energy i.e., Celxpert Energy and San Fu go up and down completely randomly.
Pair Corralation between Celxpert Energy and San Fu
Assuming the 90 days trading horizon Celxpert Energy is expected to under-perform the San Fu. In addition to that, Celxpert Energy is 2.17 times more volatile than San Fu Chemical. It trades about -0.02 of its total potential returns per unit of risk. San Fu Chemical is currently generating about -0.04 per unit of volatility. If you would invest 12,100 in San Fu Chemical on December 4, 2024 and sell it today you would lose (150.00) from holding San Fu Chemical or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Celxpert Energy vs. San Fu Chemical
Performance |
| Timeline |
| Celxpert Energy |
| San Fu Chemical |
Celxpert Energy and San Fu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celxpert Energy and San Fu
The main advantage of trading using opposite Celxpert Energy and San Fu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celxpert Energy position performs unexpectedly, San Fu 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 San Fu will offset losses from the drop in San Fu's long position.| Celxpert Energy vs. Hon Hai Precision | Celxpert Energy vs. Delta Electronics | Celxpert Energy vs. LARGAN Precision Co | Celxpert Energy vs. E Ink Holdings |
| San Fu vs. Nuvoton Technology Corp | San Fu vs. Shiny Chemical Industrial | San Fu vs. Jinan Acetate Chemical | San Fu vs. Coremax Corp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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