Correlation Between SCANDION ONC and GUOTAI JUNAN
Can any of the company-specific risk be diversified away by investing in both SCANDION ONC and GUOTAI JUNAN 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 SCANDION ONC and GUOTAI JUNAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDION ONC DK 0735 and GUOTAI JUNAN SEC, you can compare the effects of market volatilities on SCANDION ONC and GUOTAI JUNAN 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 SCANDION ONC with a short position of GUOTAI JUNAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDION ONC and GUOTAI JUNAN.
Diversification Opportunities for SCANDION ONC and GUOTAI JUNAN
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCANDION and GUOTAI is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding SCANDION ONC DK 0735 and GUOTAI JUNAN SEC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOTAI JUNAN SEC and SCANDION ONC 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 SCANDION ONC DK 0735 are associated (or correlated) with GUOTAI JUNAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOTAI JUNAN SEC has no effect on the direction of SCANDION ONC i.e., SCANDION ONC and GUOTAI JUNAN go up and down completely randomly.
Pair Corralation between SCANDION ONC and GUOTAI JUNAN
Assuming the 90 days horizon SCANDION ONC is expected to generate 1.58 times less return on investment than GUOTAI JUNAN. In addition to that, SCANDION ONC is 3.35 times more volatile than GUOTAI JUNAN SEC. It trades about 0.01 of its total potential returns per unit of risk. GUOTAI JUNAN SEC is currently generating about 0.07 per unit of volatility. If you would invest 49.00 in GUOTAI JUNAN SEC on September 2, 2024 and sell it today you would earn a total of 86.00 from holding GUOTAI JUNAN SEC or generate 175.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCANDION ONC DK 0735 vs. GUOTAI JUNAN SEC
Performance |
| Timeline |
| SCANDION ONC DK |
| GUOTAI JUNAN SEC |
SCANDION ONC and GUOTAI JUNAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCANDION ONC and GUOTAI JUNAN
The main advantage of trading using opposite SCANDION ONC and GUOTAI JUNAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDION ONC position performs unexpectedly, GUOTAI JUNAN 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 GUOTAI JUNAN will offset losses from the drop in GUOTAI JUNAN's long position.| SCANDION ONC vs. WIMFARM SA EO | SCANDION ONC vs. CarsalesCom | SCANDION ONC vs. North American Construction | SCANDION ONC vs. Australian Agricultural |
| GUOTAI JUNAN vs. Morgan Stanley | GUOTAI JUNAN vs. The Goldman Sachs | GUOTAI JUNAN vs. Superior Plus Corp | GUOTAI JUNAN vs. NMI Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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