Correlation Between SIM Technology and BH Global
Can any of the company-specific risk be diversified away by investing in both SIM Technology and BH Global 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 SIM Technology and BH Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIM Technology Group and BH Global, you can compare the effects of market volatilities on SIM Technology and BH Global 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 SIM Technology with a short position of BH Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIM Technology and BH Global.
Diversification Opportunities for SIM Technology and BH Global
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between SIM and 911608 is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SIM Technology Group and BH Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BH Global and SIM Technology 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 SIM Technology Group are associated (or correlated) with BH Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BH Global has no effect on the direction of SIM Technology i.e., SIM Technology and BH Global go up and down completely randomly.
Pair Corralation between SIM Technology and BH Global
Assuming the 90 days trading horizon SIM Technology Group is expected to under-perform the BH Global. But the stock apears to be less risky and, when comparing its historical volatility, SIM Technology Group is 2.38 times less risky than BH Global. The stock trades about -0.01 of its potential returns per unit of risk. The BH Global is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 322.00 in BH Global on September 12, 2024 and sell it today you would earn a total of 66.00 from holding BH Global or generate 20.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIM Technology Group vs. BH Global
Performance |
| Timeline |
| SIM Technology Group |
| BH Global |
SIM Technology and BH Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIM Technology and BH Global
The main advantage of trading using opposite SIM Technology and BH Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIM Technology position performs unexpectedly, BH Global 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 BH Global will offset losses from the drop in BH Global's long position.| SIM Technology vs. Cal Comp Electronics Public | SIM Technology vs. Neo Neon Holdings Limited | SIM Technology vs. Ju Teng International | SIM Technology vs. Digital China Holdings |
| BH Global vs. Voltronic Power Technology | BH Global vs. Advanced Energy Solution | BH Global vs. Simplo Technology Co | BH Global vs. Amtran Technology Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world |