Correlation Between Sibanye Stillwater and CHINA EDUCATION
Can any of the company-specific risk be diversified away by investing in both Sibanye Stillwater and CHINA EDUCATION 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 Sibanye Stillwater and CHINA EDUCATION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sibanye Stillwater Limited and CHINA EDUCATION GROUP, you can compare the effects of market volatilities on Sibanye Stillwater and CHINA EDUCATION 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 Sibanye Stillwater with a short position of CHINA EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sibanye Stillwater and CHINA EDUCATION.
Diversification Opportunities for Sibanye Stillwater and CHINA EDUCATION
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sibanye and CHINA is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sibanye Stillwater Limited and CHINA EDUCATION GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA EDUCATION GROUP and Sibanye Stillwater 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 Sibanye Stillwater Limited are associated (or correlated) with CHINA EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA EDUCATION GROUP has no effect on the direction of Sibanye Stillwater i.e., Sibanye Stillwater and CHINA EDUCATION go up and down completely randomly.
Pair Corralation between Sibanye Stillwater and CHINA EDUCATION
Assuming the 90 days horizon Sibanye Stillwater Limited is expected to generate 0.5 times more return on investment than CHINA EDUCATION. However, Sibanye Stillwater Limited is 2.0 times less risky than CHINA EDUCATION. It trades about -0.05 of its potential returns per unit of risk. CHINA EDUCATION GROUP is currently generating about -0.21 per unit of risk. If you would invest 96.00 in Sibanye Stillwater Limited on September 13, 2024 and sell it today you would lose (3.00) from holding Sibanye Stillwater Limited or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sibanye Stillwater Limited vs. CHINA EDUCATION GROUP
Performance |
| Timeline |
| Sibanye Stillwater |
| CHINA EDUCATION GROUP |
Sibanye Stillwater and CHINA EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sibanye Stillwater and CHINA EDUCATION
The main advantage of trading using opposite Sibanye Stillwater and CHINA EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sibanye Stillwater position performs unexpectedly, CHINA EDUCATION 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 CHINA EDUCATION will offset losses from the drop in CHINA EDUCATION's long position.| Sibanye Stillwater vs. EMBARK EDUCATION LTD | Sibanye Stillwater vs. SEI INVESTMENTS | Sibanye Stillwater vs. Chuangs China Investments | Sibanye Stillwater vs. Strategic Education |
| CHINA EDUCATION vs. Apple Inc | CHINA EDUCATION vs. Apple Inc | CHINA EDUCATION vs. Apple Inc | CHINA EDUCATION vs. Apple Inc |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |