Correlation Between Sinbon Electronics and Singatron Enterprise
Can any of the company-specific risk be diversified away by investing in both Sinbon Electronics and Singatron Enterprise 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 Singatron Enterprise 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 Singatron Enterprise Co, you can compare the effects of market volatilities on Sinbon Electronics and Singatron Enterprise 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 Singatron Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinbon Electronics and Singatron Enterprise.
Diversification Opportunities for Sinbon Electronics and Singatron Enterprise
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sinbon and Singatron is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sinbon Electronics Co and Singatron Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singatron Enterprise 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 Singatron Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singatron Enterprise has no effect on the direction of Sinbon Electronics i.e., Sinbon Electronics and Singatron Enterprise go up and down completely randomly.
Pair Corralation between Sinbon Electronics and Singatron Enterprise
Assuming the 90 days trading horizon Sinbon Electronics Co is expected to generate 0.56 times more return on investment than Singatron Enterprise. However, Sinbon Electronics Co is 1.8 times less risky than Singatron Enterprise. It trades about -0.01 of its potential returns per unit of risk. Singatron Enterprise Co is currently generating about -0.05 per unit of risk. If you would invest 26,900 in Sinbon Electronics Co on August 28, 2024 and sell it today you would lose (100.00) from holding Sinbon Electronics Co or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinbon Electronics Co vs. Singatron Enterprise Co
Performance |
| Timeline |
| Sinbon Electronics |
| Singatron Enterprise |
Sinbon Electronics and Singatron Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinbon Electronics and Singatron Enterprise
The main advantage of trading using opposite Sinbon Electronics and Singatron Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinbon Electronics position performs unexpectedly, Singatron Enterprise 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 Singatron Enterprise will offset losses from the drop in Singatron Enterprise'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 |
| Singatron Enterprise vs. Advantech Co | Singatron Enterprise vs. IEI Integration Corp | Singatron Enterprise vs. Flytech Technology Co | Singatron Enterprise 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |