Correlation Between SSAW Hotels and Techshine Electronics

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SSAW Hotels and Techshine Electronics 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 SSAW Hotels and Techshine Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSAW Hotels Resorts and Techshine Electronics Co, you can compare the effects of market volatilities on SSAW Hotels and Techshine Electronics 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 SSAW Hotels with a short position of Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSAW Hotels and Techshine Electronics.

Diversification Opportunities for SSAW Hotels and Techshine Electronics

SSAWTechshineDiversified AwaySSAWTechshineDiversified Away100%
0.58
  Correlation Coefficient

Very weak diversification

The 3 months correlation between SSAW and Techshine is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding SSAW Hotels Resorts and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine Electronics and SSAW Hotels 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 SSAW Hotels Resorts are associated (or correlated) with Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of SSAW Hotels i.e., SSAW Hotels and Techshine Electronics go up and down completely randomly.

Pair Corralation between SSAW Hotels and Techshine Electronics

Assuming the 90 days trading horizon SSAW Hotels Resorts is expected to under-perform the Techshine Electronics. In addition to that, SSAW Hotels is 1.32 times more volatile than Techshine Electronics Co. It trades about -0.08 of its total potential returns per unit of risk. Techshine Electronics Co is currently generating about 0.03 per unit of volatility. If you would invest  2,046  in Techshine Electronics Co on October 20, 2024 and sell it today you would earn a total of  47.00  from holding Techshine Electronics Co or generate 2.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

SSAW Hotels Resorts  vs.  Techshine Electronics Co

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10010203040
JavaScript chart by amCharts 3.21.15301073 301379
       Timeline  
SSAW Hotels Resorts 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SSAW Hotels Resorts has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan182022242628
Techshine Electronics 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Techshine Electronics Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Techshine Electronics is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1819202122

SSAW Hotels and Techshine Electronics Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.86-4.39-2.92-1.450.01.332.684.035.39 0.0300.0350.0400.0450.0500.055
JavaScript chart by amCharts 3.21.15301073 301379
       Returns  

Pair Trading with SSAW Hotels and Techshine Electronics

The main advantage of trading using opposite SSAW Hotels and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSAW Hotels position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' long position.
The idea behind SSAW Hotels Resorts and Techshine Electronics 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Complementary Tools

Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Equity Valuation
Check real value of public entities based on technical and fundamental data
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume