Correlation Between Shenzhen Glory and SIASUN Robot

Can any of the company-specific risk be diversified away by investing in both Shenzhen Glory and SIASUN Robot 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 Shenzhen Glory and SIASUN Robot into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shenzhen Glory Medical and SIASUN Robot Automation, you can compare the effects of market volatilities on Shenzhen Glory and SIASUN Robot 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 Shenzhen Glory with a short position of SIASUN Robot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and SIASUN Robot.

Diversification Opportunities for Shenzhen Glory and SIASUN Robot

0.0

Correlation Coefficient

Shenzhen Glory  SIASUN Robot

Pay attention - limited upside

The 3 months correlation between Shenzhen and SIASUN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and SIASUN Robot Automation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIASUN Robot Automation and Shenzhen Glory 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 Shenzhen Glory Medical are associated (or correlated) with SIASUN Robot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIASUN Robot Automation has no effect on the direction of Shenzhen Glory i.e., Shenzhen Glory and SIASUN Robot go up and down completely randomly.

Pair Corralation between Shenzhen Glory and SIASUN Robot

If you would invest  318.00  in Shenzhen Glory Medical on December 27, 2024 and sell it today you would earn a total of  14.00  from holding Shenzhen Glory Medical or generate 4.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.75%
Values	Daily Returns

Shenzhen Glory Medical  vs.  SIASUN Robot Automation

Shenzhen Glory Medical

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Shenzhen Glory Medical are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Shenzhen Glory is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

SIASUN Robot Automation

Risk-Adjusted Performance

Very Weak

Over the last 90 days SIASUN Robot Automation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SIASUN Robot is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Shenzhen Glory and SIASUN Robot

The main advantage of trading using opposite Shenzhen Glory and SIASUN Robot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory position performs unexpectedly, SIASUN Robot 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 SIASUN Robot will offset losses from the drop in SIASUN Robot's long position.

The idea behind Shenzhen Glory Medical and SIASUN Robot Automation 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.