Correlation Between SCOR PK and China Sun
Can any of the company-specific risk be diversified away by investing in both SCOR PK and China Sun 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 SCOR PK and China Sun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR PK and China Sun Grp, you can compare the effects of market volatilities on SCOR PK and China Sun 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 SCOR PK with a short position of China Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR PK and China Sun.
Diversification Opportunities for SCOR PK and China Sun
Pay attention - limited upside
The 3 months correlation between SCOR and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and China Sun Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sun Grp and SCOR PK 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 SCOR PK are associated (or correlated) with China Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sun Grp has no effect on the direction of SCOR PK i.e., SCOR PK and China Sun go up and down completely randomly.
Pair Corralation between SCOR PK and China Sun
If you would invest 210.00 in SCOR PK on September 1, 2024 and sell it today you would earn a total of 39.00 from holding SCOR PK or generate 18.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCOR PK vs. China Sun Grp
Performance |
| Timeline |
| SCOR PK |
| China Sun Grp |
SCOR PK and China Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR PK and China Sun
The main advantage of trading using opposite SCOR PK and China Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR PK position performs unexpectedly, China Sun 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 Sun will offset losses from the drop in China Sun's long position.The idea behind SCOR PK and China Sun Grp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| China Sun vs. South32 Limited | China Sun vs. NioCorp Developments Ltd | China Sun vs. HUMANA INC | China Sun vs. SCOR PK |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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