Correlation Between China International and Servyou Software
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By analyzing existing cross correlation between China International Capital and Servyou Software Group, you can compare the effects of market volatilities on China International 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 International with a short position of Servyou Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Servyou Software.
Diversification Opportunities for China International and Servyou Software
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Servyou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital 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 International 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 International Capital 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 International i.e., China International and Servyou Software go up and down completely randomly.
Pair Corralation between China International and Servyou Software
Assuming the 90 days trading horizon China International Capital is expected to under-perform the Servyou Software. But the stock apears to be less risky and, when comparing its historical volatility, China International Capital is 1.98 times less risky than Servyou Software. The stock trades about -0.06 of its potential returns per unit of risk. The Servyou Software Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 4,400 in Servyou Software Group on January 24, 2025 and sell it today you would lose (155.00) from holding Servyou Software Group or give up 3.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Servyou Software Group
Performance |
| Timeline |
| China International |
| Servyou Software |
China International and Servyou Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Servyou Software
The main advantage of trading using opposite China International and Servyou Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International 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 International vs. China Life Insurance | China International vs. Cinda Securities Co | China International vs. Piotech Inc A | China International vs. Dongxing Sec Co |
| Servyou Software vs. Shenzhen Silver Basis | Servyou Software vs. JCHX Mining Management | Servyou Software vs. Yuan Longping High tech | Servyou Software vs. Sinofibers Technology Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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