Correlation Between SIS and Spencers Retail
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By analyzing existing cross correlation between SIS LIMITED and Spencers Retail Limited, you can compare the effects of market volatilities on SIS and Spencers Retail 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 SIS with a short position of Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIS and Spencers Retail.
Diversification Opportunities for SIS and Spencers Retail
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SIS and Spencers is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SIS LIMITED and Spencers Retail Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spencers Retail and SIS 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 SIS LIMITED are associated (or correlated) with Spencers Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spencers Retail has no effect on the direction of SIS i.e., SIS and Spencers Retail go up and down completely randomly.
Pair Corralation between SIS and Spencers Retail
Assuming the 90 days trading horizon SIS LIMITED is expected to generate 0.73 times more return on investment than Spencers Retail. However, SIS LIMITED is 1.36 times less risky than Spencers Retail. It trades about -0.05 of its potential returns per unit of risk. Spencers Retail Limited is currently generating about -0.13 per unit of risk. If you would invest 38,605 in SIS LIMITED on August 30, 2024 and sell it today you would lose (685.00) from holding SIS LIMITED or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
SIS LIMITED vs. Spencers Retail Limited
Performance |
| Timeline |
| SIS LIMITED |
| Spencers Retail |
SIS and Spencers Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIS and Spencers Retail
The main advantage of trading using opposite SIS and Spencers Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIS position performs unexpectedly, Spencers Retail 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 Spencers Retail will offset losses from the drop in Spencers Retail's long position.| SIS vs. Kingfa Science Technology | SIS vs. Rico Auto Industries | SIS vs. GACM Technologies Limited | SIS vs. COSMO FIRST LIMITED |
| Spencers Retail vs. LT Technology Services | Spencers Retail vs. California Software | Spencers Retail vs. Silver Touch Technologies | Spencers Retail vs. Transport of |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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