Correlation Between Sichuan Teway and Saurer Intelligent
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By analyzing existing cross correlation between Sichuan Teway Food and Saurer Intelligent Technology, you can compare the effects of market volatilities on Sichuan Teway 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 Sichuan Teway with a short position of Saurer Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Saurer Intelligent.
Diversification Opportunities for Sichuan Teway and Saurer Intelligent
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Saurer is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food and Saurer Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saurer Intelligent and Sichuan Teway 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 Sichuan Teway Food 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 Sichuan Teway i.e., Sichuan Teway and Saurer Intelligent go up and down completely randomly.
Pair Corralation between Sichuan Teway and Saurer Intelligent
Assuming the 90 days trading horizon Sichuan Teway is expected to generate 3.99 times less return on investment than Saurer Intelligent. But when comparing it to its historical volatility, Sichuan Teway Food is 1.55 times less risky than Saurer Intelligent. It trades about 0.02 of its potential returns per unit of risk. Saurer Intelligent Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 292.00 in Saurer Intelligent Technology on September 15, 2024 and sell it today you would earn a total of 93.00 from holding Saurer Intelligent Technology or generate 31.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Saurer Intelligent Technology
Performance |
| Timeline |
| Sichuan Teway Food |
| Saurer Intelligent |
Sichuan Teway and Saurer Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Saurer Intelligent
The main advantage of trading using opposite Sichuan Teway and Saurer Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway 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.| Sichuan Teway vs. Nanjing Putian Telecommunications | Sichuan Teway vs. Tianjin Realty Development | Sichuan Teway vs. Kangyue Technology Co | Sichuan Teway vs. Shenzhen Hifuture Electric |
| Saurer Intelligent vs. Zhongyin Babi Food | Saurer Intelligent vs. HaiXin Foods Co | Saurer Intelligent vs. Chongqing Changan Automobile | Saurer Intelligent vs. Sichuan Teway Food |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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