Correlation Between Chiu Ting and Sunfar Computer
Can any of the company-specific risk be diversified away by investing in both Chiu Ting and Sunfar Computer 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 Chiu Ting and Sunfar Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chiu Ting Machinery and Sunfar Computer Co, you can compare the effects of market volatilities on Chiu Ting and Sunfar Computer 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 Chiu Ting with a short position of Sunfar Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiu Ting and Sunfar Computer.
Diversification Opportunities for Chiu Ting and Sunfar Computer
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chiu and Sunfar is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Chiu Ting Machinery and Sunfar Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunfar Computer and Chiu Ting 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 Chiu Ting Machinery are associated (or correlated) with Sunfar Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunfar Computer has no effect on the direction of Chiu Ting i.e., Chiu Ting and Sunfar Computer go up and down completely randomly.
Pair Corralation between Chiu Ting and Sunfar Computer
Assuming the 90 days trading horizon Chiu Ting Machinery is expected to under-perform the Sunfar Computer. In addition to that, Chiu Ting is 4.48 times more volatile than Sunfar Computer Co. It trades about -0.26 of its total potential returns per unit of risk. Sunfar Computer Co is currently generating about 0.0 per unit of volatility. If you would invest 1,615 in Sunfar Computer Co on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Sunfar Computer Co 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 |
Chiu Ting Machinery vs. Sunfar Computer Co
Performance |
| Timeline |
| Chiu Ting Machinery |
| Sunfar Computer |
Chiu Ting and Sunfar Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chiu Ting and Sunfar Computer
The main advantage of trading using opposite Chiu Ting and Sunfar Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiu Ting position performs unexpectedly, Sunfar Computer 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 Sunfar Computer will offset losses from the drop in Sunfar Computer's long position.| Chiu Ting vs. Sunny Friend Environmental | Chiu Ting vs. TTET Union Corp | Chiu Ting vs. ECOVE Environment Corp | Chiu Ting vs. Yulon Finance Corp |
| Sunfar Computer vs. Space Shuttle Hi Tech | Sunfar Computer vs. Leatec Fine Ceramics | Sunfar Computer vs. Information Technology Total | Sunfar Computer vs. Kinko Optical 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |