Correlation Between Saurer Intelligent and Centre Testing
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By analyzing existing cross correlation between Saurer Intelligent Technology and Centre Testing Intl, you can compare the effects of market volatilities on Saurer Intelligent and Centre Testing 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 Saurer Intelligent with a short position of Centre Testing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saurer Intelligent and Centre Testing.
Diversification Opportunities for Saurer Intelligent and Centre Testing
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saurer and Centre is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Saurer Intelligent Technology and Centre Testing Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centre Testing Intl and Saurer Intelligent 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 Saurer Intelligent Technology are associated (or correlated) with Centre Testing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centre Testing Intl has no effect on the direction of Saurer Intelligent i.e., Saurer Intelligent and Centre Testing go up and down completely randomly.
Pair Corralation between Saurer Intelligent and Centre Testing
Assuming the 90 days trading horizon Saurer Intelligent Technology is expected to generate 1.23 times more return on investment than Centre Testing. However, Saurer Intelligent is 1.23 times more volatile than Centre Testing Intl. It trades about -0.01 of its potential returns per unit of risk. Centre Testing Intl is currently generating about -0.03 per unit of risk. If you would invest 306.00 in Saurer Intelligent Technology on September 4, 2024 and sell it today you would lose (79.00) from holding Saurer Intelligent Technology or give up 25.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saurer Intelligent Technology vs. Centre Testing Intl
Performance |
| Timeline |
| Saurer Intelligent |
| Centre Testing Intl |
Saurer Intelligent and Centre Testing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saurer Intelligent and Centre Testing
The main advantage of trading using opposite Saurer Intelligent and Centre Testing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saurer Intelligent position performs unexpectedly, Centre Testing 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 Centre Testing will offset losses from the drop in Centre Testing's long position.| Saurer Intelligent vs. Industrial and Commercial | Saurer Intelligent vs. Agricultural Bank of | Saurer Intelligent vs. China Construction Bank | Saurer Intelligent vs. Bank of China |
| Centre Testing vs. Xiangyang Automobile Bearing | Centre Testing vs. Shandong Publishing Media | Centre Testing vs. Changchun Faway Automobile | Centre Testing vs. Jiangsu Xinri E Vehicle |
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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