Correlation Between Sino Horizon and Coretronic
Can any of the company-specific risk be diversified away by investing in both Sino Horizon and Coretronic 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 Sino Horizon and Coretronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sino Horizon Holdings and Coretronic, you can compare the effects of market volatilities on Sino Horizon and Coretronic 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 Sino Horizon with a short position of Coretronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Horizon and Coretronic.
Diversification Opportunities for Sino Horizon and Coretronic
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sino and Coretronic is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sino Horizon Holdings and Coretronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coretronic and Sino Horizon 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 Sino Horizon Holdings are associated (or correlated) with Coretronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coretronic has no effect on the direction of Sino Horizon i.e., Sino Horizon and Coretronic go up and down completely randomly.
Pair Corralation between Sino Horizon and Coretronic
Assuming the 90 days trading horizon Sino Horizon Holdings is expected to under-perform the Coretronic. In addition to that, Sino Horizon is 1.48 times more volatile than Coretronic. It trades about -0.05 of its total potential returns per unit of risk. Coretronic is currently generating about 0.03 per unit of volatility. If you would invest 7,620 in Coretronic on August 29, 2024 and sell it today you would earn a total of 100.00 from holding Coretronic or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Horizon Holdings vs. Coretronic
Performance |
| Timeline |
| Sino Horizon Holdings |
| Coretronic |
Sino Horizon and Coretronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Horizon and Coretronic
The main advantage of trading using opposite Sino Horizon and Coretronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Horizon position performs unexpectedly, Coretronic 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 Coretronic will offset losses from the drop in Coretronic's long position.| Sino Horizon vs. Tainan Spinning Co | Sino Horizon vs. Carnival Industrial Corp | Sino Horizon vs. Symtek Automation Asia | Sino Horizon vs. CTCI Corp |
| Coretronic vs. Qisda Corp | Coretronic vs. AU Optronics | Coretronic vs. Vanguard International Semiconductor | Coretronic vs. Lite On Technology 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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