Correlation Between San Fu and Coremax Corp
Can any of the company-specific risk be diversified away by investing in both San Fu and Coremax Corp 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 San Fu and Coremax Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between San Fu Chemical and Coremax Corp, you can compare the effects of market volatilities on San Fu and Coremax Corp 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 San Fu with a short position of Coremax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Fu and Coremax Corp.
Diversification Opportunities for San Fu and Coremax Corp
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between San and Coremax is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding San Fu Chemical and Coremax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coremax Corp and San Fu 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 San Fu Chemical are associated (or correlated) with Coremax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coremax Corp has no effect on the direction of San Fu i.e., San Fu and Coremax Corp go up and down completely randomly.
Pair Corralation between San Fu and Coremax Corp
Assuming the 90 days trading horizon San Fu Chemical is expected to under-perform the Coremax Corp. In addition to that, San Fu is 1.21 times more volatile than Coremax Corp. It trades about -0.15 of its total potential returns per unit of risk. Coremax Corp is currently generating about -0.03 per unit of volatility. If you would invest 5,500 in Coremax Corp on October 28, 2024 and sell it today you would lose (50.00) from holding Coremax Corp or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
San Fu Chemical vs. Coremax Corp
Performance |
| Timeline |
| San Fu Chemical |
| Coremax Corp |
San Fu and Coremax Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Fu and Coremax Corp
The main advantage of trading using opposite San Fu and Coremax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Fu position performs unexpectedly, Coremax Corp 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 Coremax Corp will offset losses from the drop in Coremax Corp's long position.| San Fu vs. Nan Ya Plastics | San Fu vs. China Petrochemical Development | San Fu vs. Eternal Materials Co | San Fu vs. TSRC Corp |
| Coremax Corp vs. Mechema Chemicals Int | Coremax Corp vs. China Steel Chemical | Coremax Corp vs. Delta Electronics | Coremax Corp vs. Hota Industrial Mfg |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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