Correlation Between SanDi Properties and Advancetek Enterprise

Can any of the company-specific risk be diversified away by investing in both SanDi Properties and Advancetek Enterprise 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 SanDi Properties and Advancetek Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SanDi Properties Co and Advancetek Enterprise Co, you can compare the effects of market volatilities on SanDi Properties and Advancetek Enterprise 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 SanDi Properties with a short position of Advancetek Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of SanDi Properties and Advancetek Enterprise.

Diversification Opportunities for SanDi Properties and Advancetek Enterprise

-0.35

Correlation Coefficient

SanDi Properties  Advancetek Enterprise

Very good diversification

The 3 months correlation between SanDi and Advancetek is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SanDi Properties Co and Advancetek Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advancetek Enterprise and SanDi Properties 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 SanDi Properties Co are associated (or correlated) with Advancetek Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advancetek Enterprise has no effect on the direction of SanDi Properties i.e., SanDi Properties and Advancetek Enterprise go up and down completely randomly.

Pair Corralation between SanDi Properties and Advancetek Enterprise

Assuming the 90 days trading horizon SanDi Properties Co is expected to generate 1.34 times more return on investment than Advancetek Enterprise. However, SanDi Properties is 1.34 times more volatile than Advancetek Enterprise Co. It trades about -0.08 of its potential returns per unit of risk. Advancetek Enterprise Co is currently generating about -0.27 per unit of risk. If you would invest  6,030  in SanDi Properties Co on October 9, 2024 and sell it today you would lose (450.00) from holding SanDi Properties Co or give up 7.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

SanDi Properties Co  vs.  Advancetek Enterprise Co

SanDi Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SanDi Properties Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Advancetek Enterprise

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Advancetek Enterprise Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Advancetek Enterprise may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with SanDi Properties and Advancetek Enterprise

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

The idea behind SanDi Properties Co and Advancetek Enterprise Co 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.