Correlation Between Shandong Publishing and Senci Electric
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By analyzing existing cross correlation between Shandong Publishing Media and Senci Electric Machinery, you can compare the effects of market volatilities on Shandong Publishing and Senci Electric 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 Shandong Publishing with a short position of Senci Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Senci Electric.
Diversification Opportunities for Shandong Publishing and Senci Electric
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shandong and Senci is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Senci Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senci Electric Machinery and Shandong Publishing 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 Shandong Publishing Media are associated (or correlated) with Senci Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senci Electric Machinery has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Senci Electric go up and down completely randomly.
Pair Corralation between Shandong Publishing and Senci Electric
Assuming the 90 days trading horizon Shandong Publishing Media is expected to under-perform the Senci Electric. But the stock apears to be less risky and, when comparing its historical volatility, Shandong Publishing Media is 1.25 times less risky than Senci Electric. The stock trades about -0.03 of its potential returns per unit of risk. The Senci Electric Machinery is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,397 in Senci Electric Machinery on October 24, 2024 and sell it today you would earn a total of 389.00 from holding Senci Electric Machinery or generate 27.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Publishing Media vs. Senci Electric Machinery
Performance |
Timeline |
Shandong Publishing Media |
Senci Electric Machinery |
Shandong Publishing and Senci Electric Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Publishing and Senci Electric
The main advantage of trading using opposite Shandong Publishing and Senci Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Senci Electric 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 Senci Electric will offset losses from the drop in Senci Electric's long position.Shandong Publishing vs. Tsingtao Brewery Co | Shandong Publishing vs. APT Medical | Shandong Publishing vs. Medprin Regenerative Medical | Shandong Publishing vs. Innovative Medical Management |
Senci Electric vs. Industrial and Commercial | Senci Electric vs. Agricultural Bank of | Senci Electric vs. China Construction Bank | Senci Electric vs. Bank of China |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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