Correlation Between Sunflag Iron and Shigan Quantum

Can any of the company-specific risk be diversified away by investing in both Sunflag Iron and Shigan Quantum 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 Sunflag Iron and Shigan Quantum into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sunflag Iron And and Shigan Quantum Tech, you can compare the effects of market volatilities on Sunflag Iron and Shigan Quantum 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 Sunflag Iron with a short position of Shigan Quantum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunflag Iron and Shigan Quantum.

Diversification Opportunities for Sunflag Iron and Shigan Quantum

-0.21

Correlation Coefficient

Sunflag Iron  Shigan Quantum

Very good diversification

The 3 months correlation between Sunflag and Shigan is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sunflag Iron And and Shigan Quantum Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shigan Quantum Tech and Sunflag Iron 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 Sunflag Iron And are associated (or correlated) with Shigan Quantum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shigan Quantum Tech has no effect on the direction of Sunflag Iron i.e., Sunflag Iron and Shigan Quantum go up and down completely randomly.

Pair Corralation between Sunflag Iron and Shigan Quantum

Assuming the 90 days trading horizon Sunflag Iron And is expected to generate 0.84 times more return on investment than Shigan Quantum. However, Sunflag Iron And is 1.18 times less risky than Shigan Quantum. It trades about 0.06 of its potential returns per unit of risk. Shigan Quantum Tech is currently generating about -0.04 per unit of risk. If you would invest  20,850  in Sunflag Iron And on October 22, 2024 and sell it today you would earn a total of  7,850  from holding Sunflag Iron And or generate 37.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	24.89%
Values	Daily Returns

Sunflag Iron And  vs.  Shigan Quantum Tech

Sunflag Iron And

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sunflag Iron And are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady essential indicators, Sunflag Iron reported solid returns over the last few months and may actually be approaching a breakup point.

Shigan Quantum Tech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shigan Quantum Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Sunflag Iron and Shigan Quantum

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

The idea behind Sunflag Iron And and Shigan Quantum Tech 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.