Correlation Between Senci Electric and Era
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By analyzing existing cross correlation between Senci Electric Machinery and Era Co, you can compare the effects of market volatilities on Senci Electric and Era 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 Senci Electric with a short position of Era. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senci Electric and Era.
Diversification Opportunities for Senci Electric and Era
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Senci and Era is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Senci Electric Machinery and Era Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Co and Senci Electric 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 Senci Electric Machinery are associated (or correlated) with Era. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Co has no effect on the direction of Senci Electric i.e., Senci Electric and Era go up and down completely randomly.
Pair Corralation between Senci Electric and Era
Assuming the 90 days trading horizon Senci Electric is expected to generate 5.65 times less return on investment than Era. But when comparing it to its historical volatility, Senci Electric Machinery is 1.4 times less risky than Era. It trades about 0.06 of its potential returns per unit of risk. Era Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 457.00 in Era Co on September 14, 2024 and sell it today you would earn a total of 67.00 from holding Era Co or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senci Electric Machinery vs. Era Co
Performance |
| Timeline |
| Senci Electric Machinery |
| Era Co |
Senci Electric and Era Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senci Electric and Era
The main advantage of trading using opposite Senci Electric and Era positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senci Electric position performs unexpectedly, Era 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 Era will offset losses from the drop in Era's long position.| Senci Electric vs. Industrial and Commercial | Senci Electric vs. China Construction Bank | Senci Electric vs. Agricultural Bank of | Senci Electric vs. Bank of China |
| Era vs. Ningbo Ligong Online | Era vs. Haima Automobile Group | Era vs. Zoy Home Furnishing | Era vs. Songz Automobile Air |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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