Correlation Between Saurer Intelligent and Dingli Communications

Can any of the company-specific risk be diversified away by investing in both Saurer Intelligent and Dingli Communications 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 Saurer Intelligent and Dingli Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Saurer Intelligent Technology and Dingli Communications Corp, you can compare the effects of market volatilities on Saurer Intelligent and Dingli Communications 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 Saurer Intelligent with a short position of Dingli Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saurer Intelligent and Dingli Communications.

Diversification Opportunities for Saurer Intelligent and Dingli Communications

0.76

Correlation Coefficient

Saurer Intelligent  Dingli Communications

Poor diversification

The 3 months correlation between Saurer and Dingli is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Saurer Intelligent Technology and Dingli Communications Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dingli Communications and Saurer Intelligent 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 Saurer Intelligent Technology are associated (or correlated) with Dingli Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dingli Communications has no effect on the direction of Saurer Intelligent i.e., Saurer Intelligent and Dingli Communications go up and down completely randomly.

Pair Corralation between Saurer Intelligent and Dingli Communications

Assuming the 90 days trading horizon Saurer Intelligent Technology is expected to generate 1.33 times more return on investment than Dingli Communications. However, Saurer Intelligent is 1.33 times more volatile than Dingli Communications Corp. It trades about 0.13 of its potential returns per unit of risk. Dingli Communications Corp is currently generating about 0.1 per unit of risk. If you would invest  207.00  in Saurer Intelligent Technology on April 25, 2025 and sell it today you would earn a total of  39.00  from holding Saurer Intelligent Technology or generate 18.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Saurer Intelligent Technology  vs.  Dingli Communications Corp

Saurer Intelligent

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Saurer Intelligent Technology are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Saurer Intelligent sustained solid returns over the last few months and may actually be approaching a breakup point.

Dingli Communications

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dingli Communications Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Dingli Communications may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Saurer Intelligent and Dingli Communications

The main advantage of trading using opposite Saurer Intelligent and Dingli Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saurer Intelligent position performs unexpectedly, Dingli Communications 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 Dingli Communications will offset losses from the drop in Dingli Communications' long position.

The idea behind Saurer Intelligent Technology and Dingli Communications Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..