Correlation Between Singatron Enterprise and Chenbro Micom

Can any of the company-specific risk be diversified away by investing in both Singatron Enterprise and Chenbro Micom 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 Singatron Enterprise and Chenbro Micom into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Singatron Enterprise Co and Chenbro Micom Co, you can compare the effects of market volatilities on Singatron Enterprise and Chenbro Micom 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 Singatron Enterprise with a short position of Chenbro Micom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singatron Enterprise and Chenbro Micom.

Diversification Opportunities for Singatron Enterprise and Chenbro Micom

0.34

Correlation Coefficient

Singatron Enterprise  Chenbro Micom

Weak diversification

The 3 months correlation between Singatron and Chenbro is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Singatron Enterprise Co and Chenbro Micom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenbro Micom and Singatron Enterprise 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 Singatron Enterprise Co are associated (or correlated) with Chenbro Micom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenbro Micom has no effect on the direction of Singatron Enterprise i.e., Singatron Enterprise and Chenbro Micom go up and down completely randomly.

Pair Corralation between Singatron Enterprise and Chenbro Micom

Assuming the 90 days trading horizon Singatron Enterprise Co is expected to under-perform the Chenbro Micom. In addition to that, Singatron Enterprise is 1.0 times more volatile than Chenbro Micom Co. It trades about -0.11 of its total potential returns per unit of risk. Chenbro Micom Co is currently generating about 0.01 per unit of volatility. If you would invest  26,600  in Chenbro Micom Co on October 8, 2024 and sell it today you would earn a total of  100.00  from holding Chenbro Micom Co or generate 0.38% return on investment over 90 days.

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

Singatron Enterprise Co  vs.  Chenbro Micom Co

Singatron Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Singatron Enterprise Co 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.

Chenbro Micom

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Chenbro Micom Co are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Chenbro Micom is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Singatron Enterprise and Chenbro Micom

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

The idea behind Singatron Enterprise Co and Chenbro Micom 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.