Correlation Between Siebert Financial and China Galaxy
Can any of the company-specific risk be diversified away by investing in both Siebert Financial and China Galaxy 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 Siebert Financial and China Galaxy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siebert Financial Corp and China Galaxy Securities, you can compare the effects of market volatilities on Siebert Financial and China Galaxy 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 Siebert Financial with a short position of China Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siebert Financial and China Galaxy.
Diversification Opportunities for Siebert Financial and China Galaxy
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Siebert and China is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Siebert Financial Corp and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities and Siebert Financial 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 Siebert Financial Corp are associated (or correlated) with China Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Siebert Financial i.e., Siebert Financial and China Galaxy go up and down completely randomly.
Pair Corralation between Siebert Financial and China Galaxy
Given the investment horizon of 90 days Siebert Financial Corp is expected to generate 1.18 times more return on investment than China Galaxy. However, Siebert Financial is 1.18 times more volatile than China Galaxy Securities. It trades about 0.11 of its potential returns per unit of risk. China Galaxy Securities is currently generating about -0.13 per unit of risk. If you would invest 199.00 in Siebert Financial Corp on January 25, 2024 and sell it today you would earn a total of 9.00 from holding Siebert Financial Corp or generate 4.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Siebert Financial Corp vs. China Galaxy Securities
Performance |
Timeline |
Siebert Financial Corp |
China Galaxy Securities |
Siebert Financial and China Galaxy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siebert Financial and China Galaxy
The main advantage of trading using opposite Siebert Financial and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siebert Financial position performs unexpectedly, China Galaxy 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 China Galaxy will offset losses from the drop in China Galaxy's long position.Siebert Financial vs. JPMorgan Chase Co | Siebert Financial vs. Wells Fargo | Siebert Financial vs. Citigroup | Siebert Financial vs. American Express |
China Galaxy vs. Up Fintech Holding | China Galaxy vs. CITIC Securities | China Galaxy vs. Futu Holdings | China Galaxy vs. Bit Digital |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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