Correlation Between Quanta Computer and Sun Max
Can any of the company-specific risk be diversified away by investing in both Quanta Computer and Sun Max 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 Quanta Computer and Sun Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quanta Computer and Sun Max Tech, you can compare the effects of market volatilities on Quanta Computer and Sun Max 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 Quanta Computer with a short position of Sun Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quanta Computer and Sun Max.
Diversification Opportunities for Quanta Computer and Sun Max
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Quanta and Sun is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Quanta Computer and Sun Max Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Max Tech and Quanta Computer 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 Quanta Computer are associated (or correlated) with Sun Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Max Tech has no effect on the direction of Quanta Computer i.e., Quanta Computer and Sun Max go up and down completely randomly.
Pair Corralation between Quanta Computer and Sun Max
Assuming the 90 days trading horizon Quanta Computer is expected to generate 1.36 times more return on investment than Sun Max. However, Quanta Computer is 1.36 times more volatile than Sun Max Tech. It trades about 0.03 of its potential returns per unit of risk. Sun Max Tech is currently generating about -0.04 per unit of risk. If you would invest 27,400 in Quanta Computer on August 29, 2024 and sell it today you would earn a total of 1,250 from holding Quanta Computer or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quanta Computer vs. Sun Max Tech
Performance |
| Timeline |
| Quanta Computer |
| Sun Max Tech |
Quanta Computer and Sun Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quanta Computer and Sun Max
The main advantage of trading using opposite Quanta Computer and Sun Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanta Computer position performs unexpectedly, Sun Max 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 Sun Max will offset losses from the drop in Sun Max's long position.| Quanta Computer vs. Sitronix Technology Corp | Quanta Computer vs. Elan Microelectronics Corp | Quanta Computer vs. Global Unichip Corp | Quanta Computer vs. Holtek Semiconductor |
| Sun Max vs. ASRock Inc | Sun Max vs. Ko Ja Cayman | Sun Max vs. Chenbro Micom Co | Sun Max vs. Leadtek Research |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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