Correlation Between SCOTT TECHNOLOGY and Sinotruk (Hong
Can any of the company-specific risk be diversified away by investing in both SCOTT TECHNOLOGY and Sinotruk (Hong 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 SCOTT TECHNOLOGY and Sinotruk (Hong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOTT TECHNOLOGY and Sinotruk Limited, you can compare the effects of market volatilities on SCOTT TECHNOLOGY and Sinotruk (Hong 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 SCOTT TECHNOLOGY with a short position of Sinotruk (Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOTT TECHNOLOGY and Sinotruk (Hong.
Diversification Opportunities for SCOTT TECHNOLOGY and Sinotruk (Hong
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between SCOTT and Sinotruk is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SCOTT TECHNOLOGY and Sinotruk Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinotruk Limited and SCOTT 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 SCOTT TECHNOLOGY are associated (or correlated) with Sinotruk (Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinotruk Limited has no effect on the direction of SCOTT TECHNOLOGY i.e., SCOTT TECHNOLOGY and Sinotruk (Hong go up and down completely randomly.
Pair Corralation between SCOTT TECHNOLOGY and Sinotruk (Hong
Assuming the 90 days trading horizon SCOTT TECHNOLOGY is expected to under-perform the Sinotruk (Hong. But the stock apears to be less risky and, when comparing its historical volatility, SCOTT TECHNOLOGY is 2.05 times less risky than Sinotruk (Hong. The stock trades about 0.0 of its potential returns per unit of risk. The Sinotruk Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 51.00 in Sinotruk Limited on November 9, 2024 and sell it today you would earn a total of 225.00 from holding Sinotruk Limited or generate 441.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.4% |
| Values | Daily Returns |
SCOTT TECHNOLOGY vs. Sinotruk Limited
Performance |
| Timeline |
| SCOTT TECHNOLOGY |
| Sinotruk Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
SCOTT TECHNOLOGY and Sinotruk (Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOTT TECHNOLOGY and Sinotruk (Hong
The main advantage of trading using opposite SCOTT TECHNOLOGY and Sinotruk (Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOTT TECHNOLOGY position performs unexpectedly, Sinotruk (Hong 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 Sinotruk (Hong will offset losses from the drop in Sinotruk (Hong's long position.| SCOTT TECHNOLOGY vs. Keck Seng Investments | SCOTT TECHNOLOGY vs. PennyMac Mortgage Investment | SCOTT TECHNOLOGY vs. MidCap Financial Investment | SCOTT TECHNOLOGY vs. Apollo Investment Corp |
| Sinotruk (Hong vs. ADDUS HOMECARE | Sinotruk (Hong vs. CENTURIA OFFICE REIT | Sinotruk (Hong vs. InPlay Oil Corp | Sinotruk (Hong vs. Gaming and Leisure |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |