Correlation Between Sunzen Biotech and Tex Cycle
Can any of the company-specific risk be diversified away by investing in both Sunzen Biotech and Tex Cycle 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 Sunzen Biotech and Tex Cycle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunzen Biotech Bhd and Tex Cycle Technology, you can compare the effects of market volatilities on Sunzen Biotech and Tex Cycle 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 Sunzen Biotech with a short position of Tex Cycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunzen Biotech and Tex Cycle.
Diversification Opportunities for Sunzen Biotech and Tex Cycle
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunzen and Tex is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sunzen Biotech Bhd and Tex Cycle Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tex Cycle Technology and Sunzen Biotech 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 Sunzen Biotech Bhd are associated (or correlated) with Tex Cycle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tex Cycle Technology has no effect on the direction of Sunzen Biotech i.e., Sunzen Biotech and Tex Cycle go up and down completely randomly.
Pair Corralation between Sunzen Biotech and Tex Cycle
Assuming the 90 days trading horizon Sunzen Biotech Bhd is expected to generate 0.79 times more return on investment than Tex Cycle. However, Sunzen Biotech Bhd is 1.27 times less risky than Tex Cycle. It trades about -0.22 of its potential returns per unit of risk. Tex Cycle Technology is currently generating about -0.31 per unit of risk. If you would invest 33.00 in Sunzen Biotech Bhd on August 24, 2024 and sell it today you would lose (1.00) from holding Sunzen Biotech Bhd or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunzen Biotech Bhd vs. Tex Cycle Technology
Performance |
| Timeline |
| Sunzen Biotech Bhd |
| Tex Cycle Technology |
Sunzen Biotech and Tex Cycle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunzen Biotech and Tex Cycle
The main advantage of trading using opposite Sunzen Biotech and Tex Cycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunzen Biotech position performs unexpectedly, Tex Cycle 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 Tex Cycle will offset losses from the drop in Tex Cycle's long position.| Sunzen Biotech vs. Melewar Industrial Group | Sunzen Biotech vs. PIE Industrial Bhd | Sunzen Biotech vs. Sungei Bagan Rubber | Sunzen Biotech vs. BP Plastics Holding |
| Tex Cycle vs. Computer Forms Bhd | Tex Cycle vs. Minetech Resources Bhd | Tex Cycle vs. Swift Haulage Bhd | Tex Cycle vs. Sunzen Biotech Bhd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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