Correlation Between Schneider Electric and Selan Exploration
Specify exactly 2 symbols:
By analyzing existing cross correlation between Schneider Electric Infrastructure and Selan Exploration Technology, you can compare the effects of market volatilities on Schneider Electric and Selan Exploration 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 Schneider Electric with a short position of Selan Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schneider Electric and Selan Exploration.
Diversification Opportunities for Schneider Electric and Selan Exploration
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Schneider and Selan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Schneider Electric Infrastruct and Selan Exploration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selan Exploration and Schneider Electric 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 Schneider Electric Infrastructure are associated (or correlated) with Selan Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selan Exploration has no effect on the direction of Schneider Electric i.e., Schneider Electric and Selan Exploration go up and down completely randomly.
Pair Corralation between Schneider Electric and Selan Exploration
Assuming the 90 days trading horizon Schneider Electric Infrastructure is expected to generate 0.74 times more return on investment than Selan Exploration. However, Schneider Electric Infrastructure is 1.35 times less risky than Selan Exploration. It trades about -0.21 of its potential returns per unit of risk. Selan Exploration Technology is currently generating about -0.21 per unit of risk. If you would invest 80,245 in Schneider Electric Infrastructure on November 3, 2024 and sell it today you would lose (11,965) from holding Schneider Electric Infrastructure or give up 14.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Schneider Electric Infrastruct vs. Selan Exploration Technology
Performance |
| Timeline |
| Schneider Electric |
| Selan Exploration |
Schneider Electric and Selan Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schneider Electric and Selan Exploration
The main advantage of trading using opposite Schneider Electric and Selan Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schneider Electric position performs unexpectedly, Selan Exploration 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 Selan Exploration will offset losses from the drop in Selan Exploration's long position.| Schneider Electric vs. Lemon Tree Hotels | Schneider Electric vs. Viceroy Hotels Limited | Schneider Electric vs. Infomedia Press Limited | Schneider Electric vs. Diligent Media |
| Selan Exploration vs. Digjam Limited | Selan Exploration vs. Kingfa Science Technology | Selan Exploration vs. Rico Auto Industries | Selan Exploration vs. GACM Technologies Limited |
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.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |