Correlation Between Sunzen Biotech and Inari Amertron
Can any of the company-specific risk be diversified away by investing in both Sunzen Biotech and Inari Amertron 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 Inari Amertron 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 Inari Amertron Bhd, you can compare the effects of market volatilities on Sunzen Biotech and Inari Amertron 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 Inari Amertron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunzen Biotech and Inari Amertron.
Diversification Opportunities for Sunzen Biotech and Inari Amertron
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunzen and Inari is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sunzen Biotech Bhd and Inari Amertron Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inari Amertron Bhd 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 Inari Amertron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inari Amertron Bhd has no effect on the direction of Sunzen Biotech i.e., Sunzen Biotech and Inari Amertron go up and down completely randomly.
Pair Corralation between Sunzen Biotech and Inari Amertron
Assuming the 90 days trading horizon Sunzen Biotech Bhd is expected to generate 0.63 times more return on investment than Inari Amertron. However, Sunzen Biotech Bhd is 1.58 times less risky than Inari Amertron. It trades about -0.02 of its potential returns per unit of risk. Inari Amertron Bhd is currently generating about -0.1 per unit of risk. If you would invest 32.00 in Sunzen Biotech Bhd on November 28, 2024 and sell it today you would lose (2.00) from holding Sunzen Biotech Bhd or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunzen Biotech Bhd vs. Inari Amertron Bhd
Performance |
| Timeline |
| Sunzen Biotech Bhd |
| Inari Amertron Bhd |
Sunzen Biotech and Inari Amertron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunzen Biotech and Inari Amertron
The main advantage of trading using opposite Sunzen Biotech and Inari Amertron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunzen Biotech position performs unexpectedly, Inari Amertron 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 Inari Amertron will offset losses from the drop in Inari Amertron's long position.| Sunzen Biotech vs. YX Precious Metals | Sunzen Biotech vs. Binasat Communications Bhd | Sunzen Biotech vs. CPE Technology Berhad | Sunzen Biotech vs. Senheng New Retail |
| Inari Amertron vs. Shangri La Hotels | Inari Amertron vs. Eversafe Rubber Bhd | Inari Amertron vs. Kossan Rubber Industries | Inari Amertron vs. DC HEALTHCARE HOLDINGS |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |