Correlation Between Sunzen Biotech and Eonmetall Group
Can any of the company-specific risk be diversified away by investing in both Sunzen Biotech and Eonmetall 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 Eonmetall 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 Eonmetall Group Bhd, you can compare the effects of market volatilities on Sunzen Biotech and Eonmetall 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 Eonmetall Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunzen Biotech and Eonmetall Group.
Diversification Opportunities for Sunzen Biotech and Eonmetall Group
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunzen and Eonmetall is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sunzen Biotech Bhd and Eonmetall Group Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eonmetall Group 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 Eonmetall Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eonmetall Group Bhd has no effect on the direction of Sunzen Biotech i.e., Sunzen Biotech and Eonmetall Group go up and down completely randomly.
Pair Corralation between Sunzen Biotech and Eonmetall Group
Assuming the 90 days trading horizon Sunzen Biotech Bhd is expected to generate 0.44 times more return on investment than Eonmetall Group. However, Sunzen Biotech Bhd is 2.25 times less risky than Eonmetall Group. It trades about 0.01 of its potential returns per unit of risk. Eonmetall Group Bhd is currently generating about -0.06 per unit of risk. If you would invest 32.00 in Sunzen Biotech Bhd on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Sunzen Biotech Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunzen Biotech Bhd vs. Eonmetall Group Bhd
Performance |
| Timeline |
| Sunzen Biotech Bhd |
| Eonmetall Group Bhd |
Sunzen Biotech and Eonmetall Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunzen Biotech and Eonmetall Group
The main advantage of trading using opposite Sunzen Biotech and Eonmetall Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunzen Biotech position performs unexpectedly, Eonmetall 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 Eonmetall Group will offset losses from the drop in Eonmetall Group's long position.| Sunzen Biotech vs. Radiant Globaltech Bhd | Sunzen Biotech vs. Resintech Bhd | Sunzen Biotech vs. KPJ Healthcare Bhd | Sunzen Biotech vs. Pantech Group Holdings |
| Eonmetall Group vs. Mercury Industries Bhd | Eonmetall Group vs. CB Industrial Product | Eonmetall Group vs. Amalgamated Industrial Steel | Eonmetall Group vs. Sapura Industrial 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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