Correlation Between Sunnic Technology and Posiflex Technology
Can any of the company-specific risk be diversified away by investing in both Sunnic Technology and Posiflex 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 Posiflex 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 Posiflex Technology, you can compare the effects of market volatilities on Sunnic Technology and Posiflex 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 Posiflex Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunnic Technology and Posiflex Technology.
Diversification Opportunities for Sunnic Technology and Posiflex Technology
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunnic and Posiflex is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sunnic Technology Merchandise and Posiflex Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Posiflex 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 Posiflex Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Posiflex Technology has no effect on the direction of Sunnic Technology i.e., Sunnic Technology and Posiflex Technology go up and down completely randomly.
Pair Corralation between Sunnic Technology and Posiflex Technology
Assuming the 90 days trading horizon Sunnic Technology is expected to generate 3.22 times less return on investment than Posiflex Technology. In addition to that, Sunnic Technology is 1.32 times more volatile than Posiflex Technology. It trades about 0.04 of its total potential returns per unit of risk. Posiflex Technology is currently generating about 0.17 per unit of volatility. If you would invest 12,250 in Posiflex Technology on September 3, 2024 and sell it today you would earn a total of 18,800 from holding Posiflex Technology or generate 153.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunnic Technology Merchandise vs. Posiflex Technology
Performance |
| Timeline |
| Sunnic Technology |
| Posiflex Technology |
Sunnic Technology and Posiflex Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunnic Technology and Posiflex Technology
The main advantage of trading using opposite Sunnic Technology and Posiflex Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunnic Technology position performs unexpectedly, Posiflex 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 Posiflex Technology will offset losses from the drop in Posiflex Technology'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 |
| Posiflex Technology vs. Taiwan Semiconductor Manufacturing | Posiflex Technology vs. Yang Ming Marine | Posiflex Technology vs. ASE Industrial Holding | Posiflex Technology vs. AU Optronics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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