Correlation Between Hefei Metalforming and SI TECH
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hefei Metalforming Mach and SI TECH Information Technology, you can compare the effects of market volatilities on Hefei Metalforming and SI TECH 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 Hefei Metalforming with a short position of SI TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and SI TECH.
Diversification Opportunities for Hefei Metalforming and SI TECH
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hefei and 300608 is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and SI TECH Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SI TECH Information and Hefei Metalforming 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 Hefei Metalforming Mach are associated (or correlated) with SI TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SI TECH Information has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and SI TECH go up and down completely randomly.
Pair Corralation between Hefei Metalforming and SI TECH
Assuming the 90 days trading horizon Hefei Metalforming is expected to generate 36.56 times less return on investment than SI TECH. But when comparing it to its historical volatility, Hefei Metalforming Mach is 1.39 times less risky than SI TECH. It trades about 0.0 of its potential returns per unit of risk. SI TECH Information Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 861.00 in SI TECH Information Technology on September 30, 2024 and sell it today you would earn a total of 255.00 from holding SI TECH Information Technology or generate 29.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. SI TECH Information Technology
Performance |
| Timeline |
| Hefei Metalforming Mach |
| SI TECH Information |
Hefei Metalforming and SI TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and SI TECH
The main advantage of trading using opposite Hefei Metalforming and SI TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming position performs unexpectedly, SI TECH 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 SI TECH will offset losses from the drop in SI TECH's long position.| Hefei Metalforming vs. Shaanxi Meineng Clean | Hefei Metalforming vs. Anhui Transport Consulting | Hefei Metalforming vs. GigaDevice SemiconductorBeiji | Hefei Metalforming vs. Guizhou BroadcastingTV Info |
| SI TECH vs. Kweichow Moutai Co | SI TECH vs. Shenzhen Mindray Bio Medical | SI TECH vs. Jiangsu Pacific Quartz | SI TECH vs. G bits Network Technology |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |