Correlation Between Great China and Sutimco International
Can any of the company-specific risk be diversified away by investing in both Great China and Sutimco International 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 Great China and Sutimco International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great China Mania and Sutimco International, you can compare the effects of market volatilities on Great China and Sutimco International 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 Great China with a short position of Sutimco International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great China and Sutimco International.
Diversification Opportunities for Great China and Sutimco International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Great and Sutimco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Great China Mania and Sutimco International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sutimco International and Great China 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 Great China Mania are associated (or correlated) with Sutimco International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sutimco International has no effect on the direction of Great China i.e., Great China and Sutimco International go up and down completely randomly.
Pair Corralation between Great China and Sutimco International
If you would invest 0.01 in Sutimco International on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Sutimco International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great China Mania vs. Sutimco International
Performance |
| Timeline |
| Great China Mania |
| Sutimco International |
Great China and Sutimco International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great China and Sutimco International
The main advantage of trading using opposite Great China and Sutimco International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great China position performs unexpectedly, Sutimco International 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 Sutimco International will offset losses from the drop in Sutimco International's long position.| Great China vs. Fuel Tech | Great China vs. Atmus Filtration Technologies | Great China vs. Energy and Water | Great China vs. Energy Recovery |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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