Correlation Between Sany Heavy and EAST SIDE
Can any of the company-specific risk be diversified away by investing in both Sany Heavy and EAST SIDE 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 Sany Heavy and EAST SIDE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sany Heavy Equipment and EAST SIDE GAMES, you can compare the effects of market volatilities on Sany Heavy and EAST SIDE 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 Sany Heavy with a short position of EAST SIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sany Heavy and EAST SIDE.
Diversification Opportunities for Sany Heavy and EAST SIDE
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sany and EAST is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Sany Heavy Equipment and EAST SIDE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAST SIDE GAMES and Sany Heavy 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 Sany Heavy Equipment are associated (or correlated) with EAST SIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAST SIDE GAMES has no effect on the direction of Sany Heavy i.e., Sany Heavy and EAST SIDE go up and down completely randomly.
Pair Corralation between Sany Heavy and EAST SIDE
Assuming the 90 days horizon Sany Heavy is expected to generate 8.07 times less return on investment than EAST SIDE. But when comparing it to its historical volatility, Sany Heavy Equipment is 1.37 times less risky than EAST SIDE. It trades about 0.01 of its potential returns per unit of risk. EAST SIDE GAMES is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 22.00 in EAST SIDE GAMES on September 12, 2024 and sell it today you would earn a total of 18.00 from holding EAST SIDE GAMES or generate 81.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sany Heavy Equipment vs. EAST SIDE GAMES
Performance |
| Timeline |
| Sany Heavy Equipment |
| EAST SIDE GAMES |
Sany Heavy and EAST SIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sany Heavy and EAST SIDE
The main advantage of trading using opposite Sany Heavy and EAST SIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sany Heavy position performs unexpectedly, EAST SIDE 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 EAST SIDE will offset losses from the drop in EAST SIDE's long position.| Sany Heavy vs. EAST SIDE GAMES | Sany Heavy vs. National Beverage Corp | Sany Heavy vs. SENECA FOODS A | Sany Heavy vs. CI GAMES SA |
| EAST SIDE vs. NEXON Co | EAST SIDE vs. Take Two Interactive Software | EAST SIDE vs. Superior Plus Corp | EAST SIDE vs. SIVERS SEMICONDUCTORS AB |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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