Correlation Between Shenzhou International and Sysmex Corp
Can any of the company-specific risk be diversified away by investing in both Shenzhou International and Sysmex Corp 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 Shenzhou International and Sysmex Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shenzhou International Group and Sysmex Corp, you can compare the effects of market volatilities on Shenzhou International and Sysmex Corp 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 Shenzhou International with a short position of Sysmex Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhou International and Sysmex Corp.
Diversification Opportunities for Shenzhou International and Sysmex Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenzhou and Sysmex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhou International Group and Sysmex Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysmex Corp and Shenzhou International 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 Shenzhou International Group are associated (or correlated) with Sysmex Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysmex Corp has no effect on the direction of Shenzhou International i.e., Shenzhou International and Sysmex Corp go up and down completely randomly.
Pair Corralation between Shenzhou International and Sysmex Corp
Assuming the 90 days horizon Shenzhou International Group is expected to under-perform the Sysmex Corp. In addition to that, Shenzhou International is 2.75 times more volatile than Sysmex Corp. It trades about -0.09 of its total potential returns per unit of risk. Sysmex Corp is currently generating about 0.14 per unit of volatility. If you would invest 1,794 in Sysmex Corp on November 9, 2024 and sell it today you would earn a total of 59.00 from holding Sysmex Corp or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 35.0% |
| Values | Daily Returns |
Shenzhou International Group vs. Sysmex Corp
Performance |
| Timeline |
| Shenzhou International |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
| Sysmex Corp |
Shenzhou International and Sysmex Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhou International and Sysmex Corp
The main advantage of trading using opposite Shenzhou International and Sysmex Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhou International position performs unexpectedly, Sysmex Corp 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 Sysmex Corp will offset losses from the drop in Sysmex Corp's long position.| Shenzhou International vs. Unifi Inc | Shenzhou International vs. Culp Inc | Shenzhou International vs. ENN Energy Holdings | Shenzhou International vs. Anhui Conch Cement |
| Sysmex Corp vs. Straumann Holding AG | Sysmex Corp vs. Coloplast AS | Sysmex Corp vs. Essilor International SA | Sysmex Corp vs. EssilorLuxottica Socit anonyme |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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