Correlation Between Gem Year and SAIC
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gem Year Industrial Co and SAIC Motor Corp, you can compare the effects of market volatilities on Gem Year and SAIC 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 Gem Year with a short position of SAIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and SAIC.
Diversification Opportunities for Gem Year and SAIC
Poor diversification
The 3 months correlation between Gem and SAIC is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and SAIC Motor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIC Motor Corp and Gem Year 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 Gem Year Industrial Co are associated (or correlated) with SAIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIC Motor Corp has no effect on the direction of Gem Year i.e., Gem Year and SAIC go up and down completely randomly.
Pair Corralation between Gem Year and SAIC
Assuming the 90 days trading horizon Gem Year is expected to generate 3.11 times less return on investment than SAIC. In addition to that, Gem Year is 1.22 times more volatile than SAIC Motor Corp. It trades about 0.01 of its total potential returns per unit of risk. SAIC Motor Corp is currently generating about 0.04 per unit of volatility. If you would invest 1,407 in SAIC Motor Corp on September 24, 2024 and sell it today you would earn a total of 412.00 from holding SAIC Motor Corp or generate 29.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Gem Year Industrial Co vs. SAIC Motor Corp
Performance |
Timeline |
Gem Year Industrial |
SAIC Motor Corp |
Gem Year and SAIC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gem Year and SAIC
The main advantage of trading using opposite Gem Year and SAIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, SAIC 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 SAIC will offset losses from the drop in SAIC's long position.Gem Year vs. Nanjing Putian Telecommunications | Gem Year vs. Tianjin Realty Development | Gem Year vs. Kangyue Technology Co | Gem Year vs. Shenzhen Hifuture Electric |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |