Correlation Between Southern PublishingMedia and ACM Research

Can any of the company-specific risk be diversified away by investing in both Southern PublishingMedia and ACM Research 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 Southern PublishingMedia and ACM Research into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Southern PublishingMedia Co and ACM Research Shanghai, you can compare the effects of market volatilities on Southern PublishingMedia and ACM Research 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 Southern PublishingMedia with a short position of ACM Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern PublishingMedia and ACM Research.

Diversification Opportunities for Southern PublishingMedia and ACM Research

0.0

Correlation Coefficient

Southern PublishingMedia  ACM Research

Pay attention - limited upside

The 3 months correlation between Southern and ACM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Southern PublishingMedia Co and ACM Research Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACM Research Shanghai and Southern PublishingMedia 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 Southern PublishingMedia Co are associated (or correlated) with ACM Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACM Research Shanghai has no effect on the direction of Southern PublishingMedia i.e., Southern PublishingMedia and ACM Research go up and down completely randomly.

Pair Corralation between Southern PublishingMedia and ACM Research

If you would invest (100.00) in ACM Research Shanghai on October 22, 2024 and sell it today you would earn a total of  100.00  from holding ACM Research Shanghai or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Southern PublishingMedia Co  vs.  ACM Research Shanghai

Southern PublishingMedia

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Southern PublishingMedia Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Southern PublishingMedia is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

ACM Research Shanghai

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ACM Research Shanghai has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ACM Research is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Southern PublishingMedia and ACM Research

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

The idea behind Southern PublishingMedia Co and ACM Research Shanghai 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.