Correlation Between Shuang Bang and Service Quality
Can any of the company-specific risk be diversified away by investing in both Shuang Bang and Service Quality 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 Shuang Bang and Service Quality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shuang Bang Industrial and Service Quality Technology, you can compare the effects of market volatilities on Shuang Bang and Service Quality 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 Shuang Bang with a short position of Service Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuang Bang and Service Quality.
Diversification Opportunities for Shuang Bang and Service Quality
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shuang and Service is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shuang Bang Industrial and Service Quality Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Service Quality Tech and Shuang Bang 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 Shuang Bang Industrial are associated (or correlated) with Service Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Service Quality Tech has no effect on the direction of Shuang Bang i.e., Shuang Bang and Service Quality go up and down completely randomly.
Pair Corralation between Shuang Bang and Service Quality
Assuming the 90 days trading horizon Shuang Bang Industrial is expected to generate 0.73 times more return on investment than Service Quality. However, Shuang Bang Industrial is 1.37 times less risky than Service Quality. It trades about -0.15 of its potential returns per unit of risk. Service Quality Technology is currently generating about -0.26 per unit of risk. If you would invest 1,895 in Shuang Bang Industrial on September 12, 2024 and sell it today you would lose (130.00) from holding Shuang Bang Industrial or give up 6.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuang Bang Industrial vs. Service Quality Technology
Performance |
| Timeline |
| Shuang Bang Industrial |
| Service Quality Tech |
Shuang Bang and Service Quality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuang Bang and Service Quality
The main advantage of trading using opposite Shuang Bang and Service Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuang Bang position performs unexpectedly, Service Quality 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 Service Quality will offset losses from the drop in Service Quality's long position.| Shuang Bang vs. Delta Electronics | Shuang Bang vs. Ruentex Development Co | Shuang Bang vs. WiseChip Semiconductor | Shuang Bang vs. Novatek Microelectronics Corp |
| Service Quality vs. Singtex Industrial Co | Service Quality vs. General Plastic Industrial | Service Quality vs. ALFORMER Industrial Co | Service Quality vs. Shuang Bang Industrial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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