Correlation Between Southern ITS and China De

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

By analyzing existing cross correlation between Southern ITS International and China De Xiao, you can compare the effects of market volatilities on Southern ITS and China De 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 ITS with a short position of China De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern ITS and China De.

Diversification Opportunities for Southern ITS and China De

0.1

Correlation Coefficient

Southern ITS  China De

Average diversification

The 3 months correlation between Southern and China is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Southern ITS International and China De Xiao in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China De Xiao and Southern ITS 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 ITS International are associated (or correlated) with China De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China De Xiao has no effect on the direction of Southern ITS i.e., Southern ITS and China De go up and down completely randomly.

Pair Corralation between Southern ITS and China De

If you would invest  3.90  in Southern ITS International on October 11, 2024 and sell it today you would earn a total of  1.00  from holding Southern ITS International or generate 25.64% return on investment over 90 days.

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

Southern ITS International  vs.  China De Xiao

Southern ITS Interna

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Southern ITS International are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Southern ITS unveiled solid returns over the last few months and may actually be approaching a breakup point.

China De Xiao

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days China De Xiao has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Southern ITS and China De

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

The idea behind Southern ITS International and China De Xiao 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.