Correlation Between Sinbon Electronics and United Radiant
Can any of the company-specific risk be diversified away by investing in both Sinbon Electronics and United Radiant 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 Sinbon Electronics and United Radiant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinbon Electronics Co and United Radiant Technology, you can compare the effects of market volatilities on Sinbon Electronics and United Radiant 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 Sinbon Electronics with a short position of United Radiant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinbon Electronics and United Radiant.
Diversification Opportunities for Sinbon Electronics and United Radiant
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sinbon and United is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sinbon Electronics Co and United Radiant Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Radiant Technology and Sinbon Electronics 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 Sinbon Electronics Co are associated (or correlated) with United Radiant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Radiant Technology has no effect on the direction of Sinbon Electronics i.e., Sinbon Electronics and United Radiant go up and down completely randomly.
Pair Corralation between Sinbon Electronics and United Radiant
Assuming the 90 days trading horizon Sinbon Electronics Co is expected to under-perform the United Radiant. But the stock apears to be less risky and, when comparing its historical volatility, Sinbon Electronics Co is 2.3 times less risky than United Radiant. The stock trades about -0.01 of its potential returns per unit of risk. The United Radiant Technology is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,010 in United Radiant Technology on August 28, 2024 and sell it today you would earn a total of 220.00 from holding United Radiant Technology or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinbon Electronics Co vs. United Radiant Technology
Performance |
| Timeline |
| Sinbon Electronics |
| United Radiant Technology |
Sinbon Electronics and United Radiant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinbon Electronics and United Radiant
The main advantage of trading using opposite Sinbon Electronics and United Radiant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinbon Electronics position performs unexpectedly, United Radiant 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 United Radiant will offset losses from the drop in United Radiant's long position.| Sinbon Electronics vs. Delta Electronics | Sinbon Electronics vs. Novatek Microelectronics Corp | Sinbon Electronics vs. Tripod Technology Corp | Sinbon Electronics vs. BizLink Holding |
| United Radiant vs. Advantech Co | United Radiant vs. IEI Integration Corp | United Radiant vs. Flytech Technology Co | United Radiant vs. ADLINK Technology |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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