Correlation Between China State and Servyou Software
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By analyzing existing cross correlation between China State Construction and Servyou Software Group, you can compare the effects of market volatilities on China State and Servyou Software 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 Servyou Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Servyou Software.
Diversification Opportunities for China State and Servyou Software
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Servyou is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Servyou Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Servyou Software 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 Servyou Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Servyou Software has no effect on the direction of China State i.e., China State and Servyou Software go up and down completely randomly.
Pair Corralation between China State and Servyou Software
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Servyou Software. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 4.75 times less risky than Servyou Software. The stock trades about -0.11 of its potential returns per unit of risk. The Servyou Software Group is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 3,270 in Servyou Software Group on November 27, 2024 and sell it today you would earn a total of 1,069 from holding Servyou Software Group or generate 32.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Servyou Software Group
Performance |
| Timeline |
| China State Construction |
| Servyou Software |
China State and Servyou Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Servyou Software
The main advantage of trading using opposite China State and Servyou Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Servyou Software 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 Servyou Software will offset losses from the drop in Servyou Software's long position.| China State vs. TianJin 712 Communication | China State vs. INKON Life Technology | China State vs. Juneyao Airlines | China State vs. Elec Tech International Co |
| Servyou Software vs. Dazhong Transportation Group | Servyou Software vs. Heilongjiang Transport Development | Servyou Software vs. Fujian Longzhou Transportation | Servyou Software vs. Guangdong Jingyi Metal |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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