Correlation Between Supercomnet Technologies and Dufu Tech
Can any of the company-specific risk be diversified away by investing in both Supercomnet Technologies and Dufu Tech 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 Supercomnet Technologies and Dufu Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supercomnet Technologies Bhd and Dufu Tech Corp, you can compare the effects of market volatilities on Supercomnet Technologies and Dufu Tech 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 Supercomnet Technologies with a short position of Dufu Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supercomnet Technologies and Dufu Tech.
Diversification Opportunities for Supercomnet Technologies and Dufu Tech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Supercomnet and Dufu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Supercomnet Technologies Bhd and Dufu Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dufu Tech Corp and Supercomnet Technologies 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 Supercomnet Technologies Bhd are associated (or correlated) with Dufu Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dufu Tech Corp has no effect on the direction of Supercomnet Technologies i.e., Supercomnet Technologies and Dufu Tech go up and down completely randomly.
Pair Corralation between Supercomnet Technologies and Dufu Tech
Assuming the 90 days trading horizon Supercomnet Technologies is expected to generate 9.0 times less return on investment than Dufu Tech. But when comparing it to its historical volatility, Supercomnet Technologies Bhd is 1.22 times less risky than Dufu Tech. It trades about 0.0 of its potential returns per unit of risk. Dufu Tech Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 176.00 in Dufu Tech Corp on August 24, 2024 and sell it today you would lose (7.00) from holding Dufu Tech Corp or give up 3.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Supercomnet Technologies Bhd vs. Dufu Tech Corp
Performance |
| Timeline |
| Supercomnet Technologies |
| Dufu Tech Corp |
Supercomnet Technologies and Dufu Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supercomnet Technologies and Dufu Tech
The main advantage of trading using opposite Supercomnet Technologies and Dufu Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supercomnet Technologies position performs unexpectedly, Dufu Tech 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 Dufu Tech will offset losses from the drop in Dufu Tech's long position.| Supercomnet Technologies vs. Greatech Technology Bhd | Supercomnet Technologies vs. Uwc Bhd | Supercomnet Technologies vs. Genetec Technology Bhd | Supercomnet Technologies vs. PIE Industrial Bhd |
| Dufu Tech vs. Apollo Food Holdings | Dufu Tech vs. IHH Healthcare Bhd | Dufu Tech vs. YTL Hospitality REIT | Dufu Tech vs. Petronas Chemicals Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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