Correlation Between Singatron Enterprise and Hsing Ta
Can any of the company-specific risk be diversified away by investing in both Singatron Enterprise and Hsing Ta at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Singatron Enterprise and Hsing Ta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singatron Enterprise Co and Hsing Ta Cement, you can compare the effects of market volatilities on Singatron Enterprise and Hsing Ta 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 Singatron Enterprise with a short position of Hsing Ta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singatron Enterprise and Hsing Ta.
Diversification Opportunities for Singatron Enterprise and Hsing Ta
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Singatron and Hsing is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Singatron Enterprise Co and Hsing Ta Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsing Ta Cement and Singatron Enterprise 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 Singatron Enterprise Co are associated (or correlated) with Hsing Ta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsing Ta Cement has no effect on the direction of Singatron Enterprise i.e., Singatron Enterprise and Hsing Ta go up and down completely randomly.
Pair Corralation between Singatron Enterprise and Hsing Ta
Assuming the 90 days trading horizon Singatron Enterprise Co is expected to generate 3.0 times more return on investment than Hsing Ta. However, Singatron Enterprise is 3.0 times more volatile than Hsing Ta Cement. It trades about 0.02 of its potential returns per unit of risk. Hsing Ta Cement is currently generating about 0.0 per unit of risk. If you would invest 3,125 in Singatron Enterprise Co on August 28, 2024 and sell it today you would earn a total of 60.00 from holding Singatron Enterprise Co or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singatron Enterprise Co vs. Hsing Ta Cement
Performance |
| Timeline |
| Singatron Enterprise |
| Hsing Ta Cement |
Singatron Enterprise and Hsing Ta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singatron Enterprise and Hsing Ta
The main advantage of trading using opposite Singatron Enterprise and Hsing Ta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singatron Enterprise position performs unexpectedly, Hsing Ta 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 Hsing Ta will offset losses from the drop in Hsing Ta's long position.| Singatron Enterprise vs. Advantech Co | Singatron Enterprise vs. IEI Integration Corp | Singatron Enterprise vs. Flytech Technology Co | Singatron Enterprise vs. ADLINK 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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