Correlation Between PCL Technologies and San Fu
Can any of the company-specific risk be diversified away by investing in both PCL Technologies 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 PCL Technologies and San Fu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PCL Technologies and San Fu Chemical, you can compare the effects of market volatilities on PCL Technologies 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 PCL Technologies with a short position of San Fu. Check out your portfolio center. Please also check ongoing floating volatility patterns of PCL Technologies and San Fu.
Diversification Opportunities for PCL Technologies and San Fu
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PCL and San is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding PCL Technologies 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 PCL Technologies 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 PCL Technologies 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 PCL Technologies i.e., PCL Technologies and San Fu go up and down completely randomly.
Pair Corralation between PCL Technologies and San Fu
Assuming the 90 days trading horizon PCL Technologies is expected to generate 1.34 times more return on investment than San Fu. However, PCL Technologies is 1.34 times more volatile than San Fu Chemical. It trades about 0.03 of its potential returns per unit of risk. San Fu Chemical is currently generating about 0.02 per unit of risk. If you would invest 10,164 in PCL Technologies on September 3, 2024 and sell it today you would earn a total of 1,636 from holding PCL Technologies or generate 16.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
PCL Technologies vs. San Fu Chemical
Performance |
| Timeline |
| PCL Technologies |
| San Fu Chemical |
PCL Technologies and San Fu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PCL Technologies and San Fu
The main advantage of trading using opposite PCL Technologies and San Fu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PCL Technologies 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.| PCL Technologies vs. Phison Electronics | PCL Technologies vs. Transcend Information | PCL Technologies vs. Infortrend Technology | PCL Technologies vs. Ate Energy International |
| San Fu vs. Delta Electronics | San Fu vs. China Steel Chemical | San Fu vs. WiseChip Semiconductor | San Fu vs. Novatek Microelectronics 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |