Correlation Between Getac Technology and Sun Max
Can any of the company-specific risk be diversified away by investing in both Getac Technology 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 Getac Technology and Sun Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getac Technology Corp and Sun Max Tech, you can compare the effects of market volatilities on Getac Technology 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 Getac Technology with a short position of Sun Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getac Technology and Sun Max.
Diversification Opportunities for Getac Technology and Sun Max
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Getac and Sun is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Getac Technology Corp 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 Getac Technology 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 Getac Technology Corp 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 Getac Technology i.e., Getac Technology and Sun Max go up and down completely randomly.
Pair Corralation between Getac Technology and Sun Max
Assuming the 90 days trading horizon Getac Technology Corp is expected to generate 1.05 times more return on investment than Sun Max. However, Getac Technology is 1.05 times more volatile than Sun Max Tech. It trades about -0.02 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 11,400 in Getac Technology Corp on August 29, 2024 and sell it today you would lose (1,000.00) from holding Getac Technology Corp or give up 8.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getac Technology Corp vs. Sun Max Tech
Performance |
| Timeline |
| Getac Technology Corp |
| Sun Max Tech |
Getac Technology and Sun Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getac Technology and Sun Max
The main advantage of trading using opposite Getac Technology and Sun Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getac Technology 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.| Getac Technology vs. Chicony Electronics Co | Getac Technology vs. Inventec Corp | Getac Technology vs. Synnex Technology International | Getac Technology vs. Micro Star International Co |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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