Correlation Between Sinopec Shanghai and Saras SpA
Can any of the company-specific risk be diversified away by investing in both Sinopec Shanghai and Saras SpA 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 Sinopec Shanghai and Saras SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinopec Shanghai Petrochemical and Saras SpA ADR, you can compare the effects of market volatilities on Sinopec Shanghai and Saras SpA 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 Sinopec Shanghai with a short position of Saras SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinopec Shanghai and Saras SpA.
Diversification Opportunities for Sinopec Shanghai and Saras SpA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sinopec and Saras is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sinopec Shanghai Petrochemical and Saras SpA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saras SpA ADR and Sinopec Shanghai 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 Sinopec Shanghai Petrochemical are associated (or correlated) with Saras SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saras SpA ADR has no effect on the direction of Sinopec Shanghai i.e., Sinopec Shanghai and Saras SpA go up and down completely randomly.
Pair Corralation between Sinopec Shanghai and Saras SpA
If you would invest 904.00 in Saras SpA ADR on January 17, 2024 and sell it today you would earn a total of 0.00 from holding Saras SpA ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sinopec Shanghai Petrochemical vs. Saras SpA ADR
Performance |
| Timeline |
| Sinopec Shanghai Pet |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Saras SpA ADR |
Sinopec Shanghai and Saras SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinopec Shanghai and Saras SpA
The main advantage of trading using opposite Sinopec Shanghai and Saras SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinopec Shanghai position performs unexpectedly, Saras SpA 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 Saras SpA will offset losses from the drop in Saras SpA's long position.| Sinopec Shanghai vs. Yuexiu Transport Infrastructure | Sinopec Shanghai vs. Cementos Pacasmayo SAA | Sinopec Shanghai vs. ChampionX | Sinopec Shanghai vs. Griffon |
| Saras SpA vs. Valero Energy | Saras SpA vs. Nemetschek SE | Saras SpA vs. ServiceNow | Saras SpA vs. Aluminum Futures |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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