Correlation Between San Shing and Strong H
Can any of the company-specific risk be diversified away by investing in both San Shing and Strong H 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 Shing and Strong H into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between San Shing Fastech and Strong H Machinery, you can compare the effects of market volatilities on San Shing and Strong H 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 Shing with a short position of Strong H. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Shing and Strong H.
Diversification Opportunities for San Shing and Strong H
Very good diversification
The 3 months correlation between San and Strong is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding San Shing Fastech and Strong H Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strong H Machinery and San Shing 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 Shing Fastech are associated (or correlated) with Strong H. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strong H Machinery has no effect on the direction of San Shing i.e., San Shing and Strong H go up and down completely randomly.
Pair Corralation between San Shing and Strong H
Assuming the 90 days trading horizon San Shing Fastech is expected to generate 0.55 times more return on investment than Strong H. However, San Shing Fastech is 1.82 times less risky than Strong H. It trades about -0.03 of its potential returns per unit of risk. Strong H Machinery is currently generating about -0.03 per unit of risk. If you would invest 5,710 in San Shing Fastech on September 3, 2024 and sell it today you would lose (180.00) from holding San Shing Fastech or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
San Shing Fastech vs. Strong H Machinery
Performance |
| Timeline |
| San Shing Fastech |
| Strong H Machinery |
San Shing and Strong H Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Shing and Strong H
The main advantage of trading using opposite San Shing and Strong H positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Shing position performs unexpectedly, Strong H 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 Strong H will offset losses from the drop in Strong H's long position.| San Shing vs. Topco Scientific Co | San Shing vs. WPG Holdings | San Shing vs. Charoen Pokphand Enterprise | San Shing vs. Merida Industry Co |
| Strong H vs. San Shing Fastech | Strong H vs. QST International | Strong H vs. Intai Technology | Strong H vs. WiseChip Semiconductor |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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