Correlation Between Sunnic Technology and ZongTai Real
Can any of the company-specific risk be diversified away by investing in both Sunnic Technology and ZongTai Real 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 Sunnic Technology and ZongTai Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunnic Technology Merchandise and ZongTai Real Estate, you can compare the effects of market volatilities on Sunnic Technology and ZongTai Real 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 Sunnic Technology with a short position of ZongTai Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunnic Technology and ZongTai Real.
Diversification Opportunities for Sunnic Technology and ZongTai Real
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunnic and ZongTai is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sunnic Technology Merchandise and ZongTai Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZongTai Real Estate and Sunnic 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 Sunnic Technology Merchandise are associated (or correlated) with ZongTai Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZongTai Real Estate has no effect on the direction of Sunnic Technology i.e., Sunnic Technology and ZongTai Real go up and down completely randomly.
Pair Corralation between Sunnic Technology and ZongTai Real
Assuming the 90 days trading horizon Sunnic Technology Merchandise is expected to generate 1.74 times more return on investment than ZongTai Real. However, Sunnic Technology is 1.74 times more volatile than ZongTai Real Estate. It trades about 0.04 of its potential returns per unit of risk. ZongTai Real Estate is currently generating about 0.05 per unit of risk. If you would invest 1,310 in Sunnic Technology Merchandise on September 4, 2024 and sell it today you would earn a total of 250.00 from holding Sunnic Technology Merchandise or generate 19.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunnic Technology Merchandise vs. ZongTai Real Estate
Performance |
| Timeline |
| Sunnic Technology |
| ZongTai Real Estate |
Sunnic Technology and ZongTai Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunnic Technology and ZongTai Real
The main advantage of trading using opposite Sunnic Technology and ZongTai Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunnic Technology position performs unexpectedly, ZongTai Real 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 ZongTai Real will offset losses from the drop in ZongTai Real's long position.| Sunnic Technology vs. Sitronix Technology Corp | Sunnic Technology vs. Kinsus Interconnect Technology | Sunnic Technology vs. WiseChip Semiconductor | Sunnic Technology vs. Novatek Microelectronics Corp |
| ZongTai Real vs. Sunnic Technology Merchandise | ZongTai Real vs. Alchip Technologies | ZongTai Real vs. Siward Crystal Technology | ZongTai Real vs. Highlight Tech |
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.
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