Correlation Between Suofeiya Home and Sany Heavy

Can any of the company-specific risk be diversified away by investing in both Suofeiya Home and Sany Heavy 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 Suofeiya Home and Sany Heavy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Suofeiya Home Collection and Sany Heavy Energy, you can compare the effects of market volatilities on Suofeiya Home and Sany Heavy 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 Suofeiya Home with a short position of Sany Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suofeiya Home and Sany Heavy.

Diversification Opportunities for Suofeiya Home and Sany Heavy

0.0

Correlation Coefficient

Suofeiya Home  Sany Heavy

Pay attention - limited upside

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

Pair Corralation between Suofeiya Home and Sany Heavy

If you would invest (100.00) in Sany Heavy Energy on October 7, 2024 and sell it today you would earn a total of  100.00  from holding Sany Heavy Energy or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Suofeiya Home Collection  vs.  Sany Heavy Energy

Suofeiya Home Collection

Risk-Adjusted Performance

0 of 100

Very Weak

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

Sany Heavy Energy

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Suofeiya Home and Sany Heavy

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

The idea behind Suofeiya Home Collection and Sany Heavy Energy 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.