Correlation Between Sungchang Autotech and Display Tech
Can any of the company-specific risk be diversified away by investing in both Sungchang Autotech and Display 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 Sungchang Autotech and Display Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungchang Autotech Co and Display Tech Co, you can compare the effects of market volatilities on Sungchang Autotech and Display 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 Sungchang Autotech with a short position of Display Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungchang Autotech and Display Tech.
Diversification Opportunities for Sungchang Autotech and Display Tech
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sungchang and Display is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sungchang Autotech Co and Display Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Display Tech and Sungchang Autotech 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 Sungchang Autotech Co are associated (or correlated) with Display Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Display Tech has no effect on the direction of Sungchang Autotech i.e., Sungchang Autotech and Display Tech go up and down completely randomly.
Pair Corralation between Sungchang Autotech and Display Tech
Assuming the 90 days trading horizon Sungchang Autotech Co is expected to under-perform the Display Tech. But the stock apears to be less risky and, when comparing its historical volatility, Sungchang Autotech Co is 1.53 times less risky than Display Tech. The stock trades about -0.08 of its potential returns per unit of risk. The Display Tech Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 298,000 in Display Tech Co on October 30, 2024 and sell it today you would earn a total of 9,000 from holding Display Tech Co or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungchang Autotech Co vs. Display Tech Co
Performance |
| Timeline |
| Sungchang Autotech |
| Display Tech |
Sungchang Autotech and Display Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungchang Autotech and Display Tech
The main advantage of trading using opposite Sungchang Autotech and Display Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungchang Autotech position performs unexpectedly, Display 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 Display Tech will offset losses from the drop in Display Tech's long position.| Sungchang Autotech vs. Mirai Semiconductors Co | Sungchang Autotech vs. Samlip General Foods | Sungchang Autotech vs. CU Medical Systems | Sungchang Autotech vs. Hannong Chemicals |
| Display Tech vs. Nh Investment And | Display Tech vs. Worldex Industry Trading | Display Tech vs. Kukil Metal Co | Display Tech vs. Formetal Co |
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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