Correlation Between Sunnic Technology and Shin Hai
Can any of the company-specific risk be diversified away by investing in both Sunnic Technology and Shin Hai 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 Shin Hai 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 Shin Hai Gas, you can compare the effects of market volatilities on Sunnic Technology and Shin Hai 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 Shin Hai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunnic Technology and Shin Hai.
Diversification Opportunities for Sunnic Technology and Shin Hai
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunnic and Shin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sunnic Technology Merchandise and Shin Hai Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shin Hai Gas 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 Shin Hai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shin Hai Gas has no effect on the direction of Sunnic Technology i.e., Sunnic Technology and Shin Hai go up and down completely randomly.
Pair Corralation between Sunnic Technology and Shin Hai
Assuming the 90 days trading horizon Sunnic Technology Merchandise is expected to generate 3.77 times more return on investment than Shin Hai. However, Sunnic Technology is 3.77 times more volatile than Shin Hai Gas. It trades about 0.04 of its potential returns per unit of risk. Shin Hai Gas is currently generating about -0.01 per unit of risk. If you would invest 1,210 in Sunnic Technology Merchandise on September 12, 2024 and sell it today you would earn a total of 350.00 from holding Sunnic Technology Merchandise or generate 28.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunnic Technology Merchandise vs. Shin Hai Gas
Performance |
| Timeline |
| Sunnic Technology |
| Shin Hai Gas |
Sunnic Technology and Shin Hai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunnic Technology and Shin Hai
The main advantage of trading using opposite Sunnic Technology and Shin Hai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunnic Technology position performs unexpectedly, Shin Hai 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 Shin Hai will offset losses from the drop in Shin Hai's long position.| Sunnic Technology vs. WIN Semiconductors | Sunnic Technology vs. GlobalWafers Co | Sunnic Technology vs. Novatek Microelectronics Corp | Sunnic Technology vs. Ruentex Development Co |
| Shin Hai vs. Golden Biotechnology | Shin Hai vs. PlayNitride | Shin Hai vs. MedFirst Healthcare Services | Shin Hai vs. Sunnic Technology Merchandise |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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