Correlation Between Sunnic Technology and STL Technology
Can any of the company-specific risk be diversified away by investing in both Sunnic Technology and STL Technology 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 STL Technology 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 STL Technology Co, you can compare the effects of market volatilities on Sunnic Technology and STL Technology 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 STL Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunnic Technology and STL Technology.
Diversification Opportunities for Sunnic Technology and STL Technology
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunnic and STL is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sunnic Technology Merchandise and STL Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STL Technology 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 STL Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STL Technology has no effect on the direction of Sunnic Technology i.e., Sunnic Technology and STL Technology go up and down completely randomly.
Pair Corralation between Sunnic Technology and STL Technology
Assuming the 90 days trading horizon Sunnic Technology is expected to generate 1.24 times less return on investment than STL Technology. But when comparing it to its historical volatility, Sunnic Technology Merchandise is 1.69 times less risky than STL Technology. It trades about 0.27 of its potential returns per unit of risk. STL Technology Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6,710 in STL Technology Co on November 28, 2024 and sell it today you would earn a total of 690.00 from holding STL Technology Co or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunnic Technology Merchandise vs. STL Technology Co
Performance |
| Timeline |
| Sunnic Technology |
| STL Technology |
Sunnic Technology and STL Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunnic Technology and STL Technology
The main advantage of trading using opposite Sunnic Technology and STL Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunnic Technology position performs unexpectedly, STL Technology 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 STL Technology will offset losses from the drop in STL Technology's long position.| Sunnic Technology vs. International CSRC Investment | Sunnic Technology vs. Farglory FTZ Investment | Sunnic Technology vs. Asia Metal Industries | Sunnic Technology vs. Taiwan Chinsan Electronic |
| STL Technology vs. Simplo Technology Co | STL Technology vs. Dynapack International Technology | STL Technology vs. Celxpert Energy | STL Technology vs. C Tech United |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |