Correlation Between Tex Ray and Sunko Ink
Can any of the company-specific risk be diversified away by investing in both Tex Ray and Sunko Ink 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 Tex Ray and Sunko Ink into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tex Ray Industrial Co and Sunko Ink Co, you can compare the effects of market volatilities on Tex Ray and Sunko Ink 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 Tex Ray with a short position of Sunko Ink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tex Ray and Sunko Ink.
Diversification Opportunities for Tex Ray and Sunko Ink
Good diversification
The 3 months correlation between Tex and Sunko is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Tex Ray Industrial Co and Sunko Ink Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunko Ink and Tex Ray 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 Tex Ray Industrial Co are associated (or correlated) with Sunko Ink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunko Ink has no effect on the direction of Tex Ray i.e., Tex Ray and Sunko Ink go up and down completely randomly.
Pair Corralation between Tex Ray and Sunko Ink
Assuming the 90 days trading horizon Tex Ray Industrial Co is expected to generate 0.72 times more return on investment than Sunko Ink. However, Tex Ray Industrial Co is 1.39 times less risky than Sunko Ink. It trades about 0.1 of its potential returns per unit of risk. Sunko Ink Co is currently generating about -0.32 per unit of risk. If you would invest 1,050 in Tex Ray Industrial Co on September 3, 2024 and sell it today you would earn a total of 30.00 from holding Tex Ray Industrial Co or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tex Ray Industrial Co vs. Sunko Ink Co
Performance |
| Timeline |
| Tex Ray Industrial |
| Sunko Ink |
Tex Ray and Sunko Ink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tex Ray and Sunko Ink
The main advantage of trading using opposite Tex Ray and Sunko Ink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tex Ray position performs unexpectedly, Sunko Ink 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 Sunko Ink will offset losses from the drop in Sunko Ink's long position.| Tex Ray vs. Tainan Spinning Co | Tex Ray vs. Chia Her Industrial | Tex Ray vs. WiseChip Semiconductor | Tex Ray vs. Novatek Microelectronics Corp |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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