Correlation Between Sunzen Biotech and Pantech Group
Can any of the company-specific risk be diversified away by investing in both Sunzen Biotech and Pantech Group 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 Pantech Group 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 Pantech Group Holdings, you can compare the effects of market volatilities on Sunzen Biotech and Pantech Group 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 Pantech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunzen Biotech and Pantech Group.
Diversification Opportunities for Sunzen Biotech and Pantech Group
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sunzen and Pantech is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sunzen Biotech Bhd and Pantech Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pantech Group Holdings 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 Pantech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pantech Group Holdings has no effect on the direction of Sunzen Biotech i.e., Sunzen Biotech and Pantech Group go up and down completely randomly.
Pair Corralation between Sunzen Biotech and Pantech Group
Assuming the 90 days trading horizon Sunzen Biotech is expected to generate 53.58 times less return on investment than Pantech Group. In addition to that, Sunzen Biotech is 1.5 times more volatile than Pantech Group Holdings. It trades about 0.0 of its total potential returns per unit of risk. Pantech Group Holdings is currently generating about 0.38 per unit of volatility. If you would invest 91.00 in Pantech Group Holdings on September 1, 2024 and sell it today you would earn a total of 5.00 from holding Pantech Group Holdings or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunzen Biotech Bhd vs. Pantech Group Holdings
Performance |
| Timeline |
| Sunzen Biotech Bhd |
| Pantech Group Holdings |
Sunzen Biotech and Pantech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunzen Biotech and Pantech Group
The main advantage of trading using opposite Sunzen Biotech and Pantech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunzen Biotech position performs unexpectedly, Pantech Group 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 Pantech Group will offset losses from the drop in Pantech Group's long position.| Sunzen Biotech vs. FGV Holdings Bhd | Sunzen Biotech vs. British American Tobacco | Sunzen Biotech vs. FARM FRESH BERHAD | Sunzen Biotech vs. Apollo Food Holdings |
| Pantech Group vs. Coraza Integrated Technology | Pantech Group vs. Choo Bee Metal | Pantech Group vs. Eonmetall Group 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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