Correlation Between Coremax Corp and Shuang Bang

Can any of the company-specific risk be diversified away by investing in both Coremax Corp and Shuang Bang 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 Coremax Corp and Shuang Bang into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Coremax Corp and Shuang Bang Industrial, you can compare the effects of market volatilities on Coremax Corp and Shuang Bang 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 Coremax Corp with a short position of Shuang Bang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coremax Corp and Shuang Bang.

Diversification Opportunities for Coremax Corp and Shuang Bang

0.57

Correlation Coefficient

Coremax Corp  Shuang Bang

Very weak diversification

The 3 months correlation between Coremax and Shuang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Coremax Corp and Shuang Bang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuang Bang Industrial and Coremax Corp 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 Coremax Corp are associated (or correlated) with Shuang Bang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuang Bang Industrial has no effect on the direction of Coremax Corp i.e., Coremax Corp and Shuang Bang go up and down completely randomly.

Pair Corralation between Coremax Corp and Shuang Bang

Assuming the 90 days trading horizon Coremax Corp is expected to generate 1.75 times more return on investment than Shuang Bang. However, Coremax Corp is 1.75 times more volatile than Shuang Bang Industrial. It trades about -0.16 of its potential returns per unit of risk. Shuang Bang Industrial is currently generating about -0.32 per unit of risk. If you would invest  5,650  in Coremax Corp on October 23, 2024 and sell it today you would lose (270.00) from holding Coremax Corp or give up 4.78% of portfolio value over 90 days.

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

Coremax Corp  vs.  Shuang Bang Industrial

Coremax Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Coremax Corp 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.

Shuang Bang Industrial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shuang Bang Industrial 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 Coremax Corp and Shuang Bang

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

The idea behind Coremax Corp and Shuang Bang Industrial 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..