Correlation Between G Shank and Siward Crystal

Can any of the company-specific risk be diversified away by investing in both G Shank and Siward Crystal 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 G Shank and Siward Crystal into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for G Shank and Siward Crystal

0.72

Correlation Coefficient

G Shank  Siward Crystal

Poor diversification

The 3 months correlation between 2476 and Siward is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding G Shank Enterprise Co and Siward Crystal Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siward Crystal Technology and G Shank 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 G Shank Enterprise Co are associated (or correlated) with Siward Crystal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siward Crystal Technology has no effect on the direction of G Shank i.e., G Shank and Siward Crystal go up and down completely randomly.

Pair Corralation between G Shank and Siward Crystal

Assuming the 90 days trading horizon G Shank Enterprise Co is expected to generate 1.88 times more return on investment than Siward Crystal. However, G Shank is 1.88 times more volatile than Siward Crystal Technology. It trades about -0.04 of its potential returns per unit of risk. Siward Crystal Technology is currently generating about -0.2 per unit of risk. If you would invest  9,010  in G Shank Enterprise Co on October 9, 2024 and sell it today you would lose (390.00) from holding G Shank Enterprise Co or give up 4.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

G Shank Enterprise Co  vs.  Siward Crystal Technology

G Shank Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days G Shank Enterprise Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, G Shank is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Siward Crystal Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siward Crystal Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with G Shank and Siward Crystal

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

The idea behind G Shank Enterprise Co and Siward Crystal Technology 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.