Correlation Between Sunspring Metal and Singtex Industrial
Can any of the company-specific risk be diversified away by investing in both Sunspring Metal and Singtex Industrial 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 Sunspring Metal and Singtex Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunspring Metal Corp and Singtex Industrial Co, you can compare the effects of market volatilities on Sunspring Metal and Singtex Industrial 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 Sunspring Metal with a short position of Singtex Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunspring Metal and Singtex Industrial.
Diversification Opportunities for Sunspring Metal and Singtex Industrial
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunspring and Singtex is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sunspring Metal Corp and Singtex Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singtex Industrial and Sunspring Metal 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 Sunspring Metal Corp are associated (or correlated) with Singtex Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singtex Industrial has no effect on the direction of Sunspring Metal i.e., Sunspring Metal and Singtex Industrial go up and down completely randomly.
Pair Corralation between Sunspring Metal and Singtex Industrial
Assuming the 90 days trading horizon Sunspring Metal Corp is expected to generate 1.46 times more return on investment than Singtex Industrial. However, Sunspring Metal is 1.46 times more volatile than Singtex Industrial Co. It trades about 0.05 of its potential returns per unit of risk. Singtex Industrial Co is currently generating about 0.0 per unit of risk. If you would invest 2,153 in Sunspring Metal Corp on September 3, 2024 and sell it today you would earn a total of 1,172 from holding Sunspring Metal Corp or generate 54.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sunspring Metal Corp vs. Singtex Industrial Co
Performance |
| Timeline |
| Sunspring Metal Corp |
| Singtex Industrial |
Sunspring Metal and Singtex Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunspring Metal and Singtex Industrial
The main advantage of trading using opposite Sunspring Metal and Singtex Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunspring Metal position performs unexpectedly, Singtex Industrial 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 Singtex Industrial will offset losses from the drop in Singtex Industrial's long position.| Sunspring Metal vs. Universal Microelectronics Co | Sunspring Metal vs. AVerMedia Technologies | Sunspring Metal vs. Symtek Automation Asia | Sunspring Metal vs. WiseChip Semiconductor |
| Singtex Industrial vs. Far Eastern New | Singtex Industrial vs. Eclat Textile Co | Singtex Industrial vs. Ruentex Industries | Singtex Industrial vs. Formosa Taffeta 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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