Correlation Between PACIFIC and Sanyo Special
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By analyzing existing cross correlation between PACIFIC GAS ELECTRIC and Sanyo Special Steel, you can compare the effects of market volatilities on PACIFIC and Sanyo Special 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 PACIFIC with a short position of Sanyo Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC and Sanyo Special.
Diversification Opportunities for PACIFIC and Sanyo Special
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between PACIFIC and Sanyo is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC GAS ELECTRIC and Sanyo Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanyo Special Steel and PACIFIC 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 PACIFIC GAS ELECTRIC are associated (or correlated) with Sanyo Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanyo Special Steel has no effect on the direction of PACIFIC i.e., PACIFIC and Sanyo Special go up and down completely randomly.
Pair Corralation between PACIFIC and Sanyo Special
Assuming the 90 days trading horizon PACIFIC is expected to generate 8.38 times less return on investment than Sanyo Special. In addition to that, PACIFIC is 2.36 times more volatile than Sanyo Special Steel. It trades about 0.01 of its total potential returns per unit of risk. Sanyo Special Steel is currently generating about 0.12 per unit of volatility. If you would invest 1,834 in Sanyo Special Steel on September 23, 2024 and sell it today you would earn a total of 13.00 from holding Sanyo Special Steel or generate 0.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.92% |
Values | Daily Returns |
PACIFIC GAS ELECTRIC vs. Sanyo Special Steel
Performance |
Timeline |
PACIFIC GAS ELECTRIC |
Sanyo Special Steel |
PACIFIC and Sanyo Special Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PACIFIC and Sanyo Special
The main advantage of trading using opposite PACIFIC and Sanyo Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC position performs unexpectedly, Sanyo Special 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 Sanyo Special will offset losses from the drop in Sanyo Special's long position.PACIFIC vs. Sanyo Special Steel | PACIFIC vs. Kaiser Aluminum | PACIFIC vs. Olympic Steel | PACIFIC vs. Tenaris SA ADR |
Sanyo Special vs. United Microelectronics | Sanyo Special vs. Global E Online | Sanyo Special vs. CTS Corporation | Sanyo Special vs. Northstar Clean Technologies |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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