Correlation Between SIERRA METALS and Chuangs China
Can any of the company-specific risk be diversified away by investing in both SIERRA METALS and Chuangs China 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 SIERRA METALS and Chuangs China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIERRA METALS and Chuangs China Investments, you can compare the effects of market volatilities on SIERRA METALS and Chuangs China 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 SIERRA METALS with a short position of Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIERRA METALS and Chuangs China.
Diversification Opportunities for SIERRA METALS and Chuangs China
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SIERRA and Chuangs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SIERRA METALS and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments and SIERRA METALS 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 SIERRA METALS are associated (or correlated) with Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of SIERRA METALS i.e., SIERRA METALS and Chuangs China go up and down completely randomly.
Pair Corralation between SIERRA METALS and Chuangs China
If you would invest 54.00 in SIERRA METALS on October 28, 2024 and sell it today you would earn a total of 4.00 from holding SIERRA METALS or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIERRA METALS vs. Chuangs China Investments
Performance |
| Timeline |
| SIERRA METALS |
| Chuangs China Investments |
SIERRA METALS and Chuangs China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIERRA METALS and Chuangs China
The main advantage of trading using opposite SIERRA METALS and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIERRA METALS position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.| SIERRA METALS vs. Apple Inc | SIERRA METALS vs. Apple Inc | SIERRA METALS vs. Apple Inc | SIERRA METALS vs. Apple Inc |
| Chuangs China vs. PTT Global Chemical | Chuangs China vs. Sekisui Chemical Co | Chuangs China vs. Mitsui Chemicals | Chuangs China vs. Silicon Motion 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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