Correlation Between Sharetronic Data and Cinda Securities

Can any of the company-specific risk be diversified away by investing in both Sharetronic Data and Cinda Securities 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 Sharetronic Data and Cinda Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Sharetronic Data and Cinda Securities

0.81

Correlation Coefficient

Sharetronic Data  Cinda Securities

Very poor diversification

The 3 months correlation between Sharetronic and Cinda is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Sharetronic Data Technology and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities and Sharetronic Data 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 Sharetronic Data Technology are associated (or correlated) with Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Sharetronic Data i.e., Sharetronic Data and Cinda Securities go up and down completely randomly.

Pair Corralation between Sharetronic Data and Cinda Securities

Assuming the 90 days trading horizon Sharetronic Data Technology is expected to generate 1.66 times more return on investment than Cinda Securities. However, Sharetronic Data is 1.66 times more volatile than Cinda Securities Co. It trades about 0.05 of its potential returns per unit of risk. Cinda Securities Co is currently generating about 0.04 per unit of risk. If you would invest  10,685  in Sharetronic Data Technology on December 28, 2024 and sell it today you would earn a total of  717.00  from holding Sharetronic Data Technology or generate 6.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.28%
Values	Daily Returns

Sharetronic Data Technology  vs.  Cinda Securities Co

Sharetronic Data Tec

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sharetronic Data Technology are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Sharetronic Data sustained solid returns over the last few months and may actually be approaching a breakup point.

Cinda Securities

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cinda Securities Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cinda Securities may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Sharetronic Data and Cinda Securities

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

The idea behind Sharetronic Data Technology and Cinda Securities 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.