Correlation Between NewFlex Technology and Sungchang Autotech
Can any of the company-specific risk be diversified away by investing in both NewFlex Technology and Sungchang Autotech 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 NewFlex Technology and Sungchang Autotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NewFlex Technology Co and Sungchang Autotech Co, you can compare the effects of market volatilities on NewFlex Technology and Sungchang Autotech 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 NewFlex Technology with a short position of Sungchang Autotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of NewFlex Technology and Sungchang Autotech.
Diversification Opportunities for NewFlex Technology and Sungchang Autotech
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NewFlex and Sungchang is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding NewFlex Technology Co and Sungchang Autotech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungchang Autotech and NewFlex Technology 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 NewFlex Technology Co are associated (or correlated) with Sungchang Autotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungchang Autotech has no effect on the direction of NewFlex Technology i.e., NewFlex Technology and Sungchang Autotech go up and down completely randomly.
Pair Corralation between NewFlex Technology and Sungchang Autotech
Assuming the 90 days trading horizon NewFlex Technology Co is expected to under-perform the Sungchang Autotech. In addition to that, NewFlex Technology is 3.66 times more volatile than Sungchang Autotech Co. It trades about -0.08 of its total potential returns per unit of risk. Sungchang Autotech Co is currently generating about -0.04 per unit of volatility. If you would invest 357,500 in Sungchang Autotech Co on October 29, 2024 and sell it today you would lose (3,000) from holding Sungchang Autotech Co or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NewFlex Technology Co vs. Sungchang Autotech Co
Performance |
| Timeline |
| NewFlex Technology |
| Sungchang Autotech |
NewFlex Technology and Sungchang Autotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NewFlex Technology and Sungchang Autotech
The main advantage of trading using opposite NewFlex Technology and Sungchang Autotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NewFlex Technology position performs unexpectedly, Sungchang Autotech 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 Sungchang Autotech will offset losses from the drop in Sungchang Autotech's long position.| NewFlex Technology vs. Dgb Financial | NewFlex Technology vs. Bookook Steel | NewFlex Technology vs. KB Financial Group | NewFlex Technology vs. Korea Alcohol Industrial |
| Sungchang Autotech vs. Samlip General Foods | Sungchang Autotech vs. Dong A Steel Technology | Sungchang Autotech vs. Sam Yang Foods | Sungchang Autotech vs. NewFlex Technology 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |