Correlation Between China State and Saurer Intelligent
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By analyzing existing cross correlation between China State Construction and Saurer Intelligent Technology, you can compare the effects of market volatilities on China State and Saurer Intelligent 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 China State with a short position of Saurer Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Saurer Intelligent.
Diversification Opportunities for China State and Saurer Intelligent
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Saurer is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Saurer Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saurer Intelligent and China State 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 China State Construction are associated (or correlated) with Saurer Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saurer Intelligent has no effect on the direction of China State i.e., China State and Saurer Intelligent go up and down completely randomly.
Pair Corralation between China State and Saurer Intelligent
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Saurer Intelligent. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 4.24 times less risky than Saurer Intelligent. The stock trades about -0.24 of its potential returns per unit of risk. The Saurer Intelligent Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 239.00 in Saurer Intelligent Technology on November 30, 2024 and sell it today you would earn a total of 39.00 from holding Saurer Intelligent Technology or generate 16.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Saurer Intelligent Technology
Performance |
| Timeline |
| China State Construction |
| Saurer Intelligent |
China State and Saurer Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Saurer Intelligent
The main advantage of trading using opposite China State and Saurer Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Saurer Intelligent 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 Saurer Intelligent will offset losses from the drop in Saurer Intelligent's long position.| China State vs. Tianjin Silvery Dragon | China State vs. Shenyang Blue Silver | China State vs. Shuhua Sports Co | China State vs. Pengxin International Mining |
| Saurer Intelligent vs. Northking Information Technology | Saurer Intelligent vs. Shanghai Ziyan Foods | Saurer Intelligent vs. Anji Foodstuff Co | Saurer Intelligent vs. Eastern Air Logistics |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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