Correlation Between Sino AG and FUJITSU
Can any of the company-specific risk be diversified away by investing in both Sino AG and FUJITSU 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 Sino AG and FUJITSU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sino AG and FUJITSU LTD ADR, you can compare the effects of market volatilities on Sino AG and FUJITSU 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 Sino AG with a short position of FUJITSU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino AG and FUJITSU.
Diversification Opportunities for Sino AG and FUJITSU
Very good diversification
The 3 months correlation between Sino and FUJITSU is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sino AG and FUJITSU LTD ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUJITSU LTD ADR and Sino AG 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 Sino AG are associated (or correlated) with FUJITSU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUJITSU LTD ADR has no effect on the direction of Sino AG i.e., Sino AG and FUJITSU go up and down completely randomly.
Pair Corralation between Sino AG and FUJITSU
Assuming the 90 days horizon Sino AG is expected to generate 1.18 times more return on investment than FUJITSU. However, Sino AG is 1.18 times more volatile than FUJITSU LTD ADR. It trades about 0.1 of its potential returns per unit of risk. FUJITSU LTD ADR is currently generating about 0.05 per unit of risk. If you would invest 2,442 in Sino AG on September 8, 2024 and sell it today you would earn a total of 4,158 from holding Sino AG or generate 170.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Sino AG vs. FUJITSU LTD ADR
Performance |
Timeline |
Sino AG |
FUJITSU LTD ADR |
Sino AG and FUJITSU Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sino AG and FUJITSU
The main advantage of trading using opposite Sino AG and FUJITSU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino AG position performs unexpectedly, FUJITSU 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 FUJITSU will offset losses from the drop in FUJITSU's long position.Sino AG vs. The Goldman Sachs | Sino AG vs. Superior Plus Corp | Sino AG vs. Origin Agritech | Sino AG vs. Identiv |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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