Correlation Between SCUT SA and IHUNT TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both SCUT SA and IHUNT TECHNOLOGY 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 SCUT SA and IHUNT TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCUT SA BACAU and IHUNT TECHNOLOGY IMPORT EXPORT, you can compare the effects of market volatilities on SCUT SA and IHUNT TECHNOLOGY 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 SCUT SA with a short position of IHUNT TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCUT SA and IHUNT TECHNOLOGY.
Diversification Opportunities for SCUT SA and IHUNT TECHNOLOGY
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCUT and IHUNT is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SCUT SA BACAU and IHUNT TECHNOLOGY IMPORT EXPORT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHUNT TECHNOLOGY IMPORT and SCUT SA 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 SCUT SA BACAU are associated (or correlated) with IHUNT TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHUNT TECHNOLOGY IMPORT has no effect on the direction of SCUT SA i.e., SCUT SA and IHUNT TECHNOLOGY go up and down completely randomly.
Pair Corralation between SCUT SA and IHUNT TECHNOLOGY
Assuming the 90 days trading horizon SCUT SA BACAU is expected to generate 1.29 times more return on investment than IHUNT TECHNOLOGY. However, SCUT SA is 1.29 times more volatile than IHUNT TECHNOLOGY IMPORT EXPORT. It trades about 0.28 of its potential returns per unit of risk. IHUNT TECHNOLOGY IMPORT EXPORT is currently generating about -0.15 per unit of risk. If you would invest 2,560 in SCUT SA BACAU on September 3, 2024 and sell it today you would earn a total of 540.00 from holding SCUT SA BACAU or generate 21.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
SCUT SA BACAU vs. IHUNT TECHNOLOGY IMPORT EXPORT
Performance |
| Timeline |
| SCUT SA BACAU |
| IHUNT TECHNOLOGY IMPORT |
SCUT SA and IHUNT TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCUT SA and IHUNT TECHNOLOGY
The main advantage of trading using opposite SCUT SA and IHUNT TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCUT SA position performs unexpectedly, IHUNT TECHNOLOGY 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 IHUNT TECHNOLOGY will offset losses from the drop in IHUNT TECHNOLOGY's long position.| SCUT SA vs. TRANSILVANIA INVESTMENTS ALLIANCE | SCUT SA vs. Bermas SA | SCUT SA vs. Remarul 16 Februarie | SCUT SA vs. TRANSILVANIA LEASING SI |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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