Correlation Between 37 Interactive and Sanan Optoelectronics
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By analyzing existing cross correlation between 37 Interactive Entertainment and Sanan Optoelectronics Co, you can compare the effects of market volatilities on 37 Interactive and Sanan Optoelectronics 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 37 Interactive with a short position of Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of 37 Interactive and Sanan Optoelectronics.
Diversification Opportunities for 37 Interactive and Sanan Optoelectronics
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 002555 and Sanan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding 37 Interactive Entertainment and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics and 37 Interactive 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 37 Interactive Entertainment are associated (or correlated) with Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of 37 Interactive i.e., 37 Interactive and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between 37 Interactive and Sanan Optoelectronics
Assuming the 90 days trading horizon 37 Interactive is expected to generate 1.73 times less return on investment than Sanan Optoelectronics. In addition to that, 37 Interactive is 1.11 times more volatile than Sanan Optoelectronics Co. It trades about 0.06 of its total potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about 0.11 per unit of volatility. If you would invest 1,064 in Sanan Optoelectronics Co on September 26, 2024 and sell it today you would earn a total of 198.00 from holding Sanan Optoelectronics Co or generate 18.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
37 Interactive Entertainment vs. Sanan Optoelectronics Co
Performance |
Timeline |
37 Interactive Enter |
Sanan Optoelectronics |
37 Interactive and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 37 Interactive and Sanan Optoelectronics
The main advantage of trading using opposite 37 Interactive and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 37 Interactive position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' long position.37 Interactive vs. China Life Insurance | 37 Interactive vs. Cinda Securities Co | 37 Interactive vs. Piotech Inc A | 37 Interactive vs. Dongxing Sec Co |
Sanan Optoelectronics vs. Ping An Insurance | Sanan Optoelectronics vs. 37 Interactive Entertainment | Sanan Optoelectronics vs. Shanghai Construction Group | Sanan Optoelectronics vs. Duzhe Publishing Media |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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