Correlation Between Saurer Intelligent and Eastern Communications
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By analyzing existing cross correlation between Saurer Intelligent Technology and Eastern Communications Co, you can compare the effects of market volatilities on Saurer Intelligent and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saurer Intelligent and Eastern Communications.
Diversification Opportunities for Saurer Intelligent and Eastern Communications
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saurer and Eastern is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Saurer Intelligent Technology and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Saurer Intelligent i.e., Saurer Intelligent and Eastern Communications go up and down completely randomly.
Pair Corralation between Saurer Intelligent and Eastern Communications
Assuming the 90 days trading horizon Saurer Intelligent Technology is expected to generate 1.48 times more return on investment than Eastern Communications. However, Saurer Intelligent is 1.48 times more volatile than Eastern Communications Co. It trades about 0.01 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.01 per unit of risk. If you would invest 223.00 in Saurer Intelligent Technology on September 1, 2024 and sell it today you would lose (5.00) from holding Saurer Intelligent Technology or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saurer Intelligent Technology vs. Eastern Communications Co
Performance |
| Timeline |
| Saurer Intelligent |
| Eastern Communications |
Saurer Intelligent and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saurer Intelligent and Eastern Communications
The main advantage of trading using opposite Saurer Intelligent and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saurer Intelligent position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Saurer Intelligent vs. China Petroleum Chemical | Saurer Intelligent vs. PetroChina Co Ltd | Saurer Intelligent vs. China State Construction | Saurer Intelligent vs. China Railway Group |
| Eastern Communications vs. Wuxi Chemical Equipment | Eastern Communications vs. Yangmei Chemical Co | Eastern Communications vs. Lander Sports Development | Eastern Communications vs. Jiangsu Jinling Sports |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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