Correlation Between Smart Concrete and Salee Industry

Can any of the company-specific risk be diversified away by investing in both Smart Concrete and Salee Industry 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 Smart Concrete and Salee Industry into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Smart Concrete Public and Salee Industry Public, you can compare the effects of market volatilities on Smart Concrete and Salee Industry 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 Smart Concrete with a short position of Salee Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Concrete and Salee Industry.

Diversification Opportunities for Smart Concrete and Salee Industry

0.0

Correlation Coefficient

Smart Concrete  Salee Industry

Pay attention - limited upside

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

Pair Corralation between Smart Concrete and Salee Industry

If you would invest  77.00  in Smart Concrete Public on October 24, 2024 and sell it today you would earn a total of  7.00  from holding Smart Concrete Public or generate 9.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Smart Concrete Public  vs.  Salee Industry Public

Smart Concrete Public

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Smart Concrete Public are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Smart Concrete may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Salee Industry Public

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Smart Concrete and Salee Industry

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

The idea behind Smart Concrete Public and Salee Industry Public 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 Commodity Directory module to find actively traded commodities issued by global exchanges.