Correlation Between SMA Solar and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both SMA Solar and CHINA TONTINE 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 SMA Solar and CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SMA Solar Technology and CHINA TONTINE WINES, you can compare the effects of market volatilities on SMA Solar and CHINA TONTINE 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 SMA Solar with a short position of CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SMA Solar and CHINA TONTINE.
Diversification Opportunities for SMA Solar and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SMA and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SMA Solar Technology and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES and SMA Solar 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 SMA Solar Technology are associated (or correlated) with CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of SMA Solar i.e., SMA Solar and CHINA TONTINE go up and down completely randomly.
Pair Corralation between SMA Solar and CHINA TONTINE
If you would invest 1,381 in SMA Solar Technology on September 14, 2024 and sell it today you would earn a total of 121.00 from holding SMA Solar Technology or generate 8.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SMA Solar Technology vs. CHINA TONTINE WINES
Performance |
| Timeline |
| SMA Solar Technology |
| CHINA TONTINE WINES |
SMA Solar and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SMA Solar and CHINA TONTINE
The main advantage of trading using opposite SMA Solar and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMA Solar position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| SMA Solar vs. Sunrun Inc | SMA Solar vs. Superior Plus Corp | SMA Solar vs. SIVERS SEMICONDUCTORS AB | SMA Solar vs. Norsk Hydro ASA |
| CHINA TONTINE vs. Chiba Bank | CHINA TONTINE vs. PKSHA TECHNOLOGY INC | CHINA TONTINE vs. TFS FINANCIAL | CHINA TONTINE vs. SMA Solar 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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