Correlation Between Ennostar and Sitronix Technology
Can any of the company-specific risk be diversified away by investing in both Ennostar and Sitronix 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 Ennostar and Sitronix Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ennostar and Sitronix Technology Corp, you can compare the effects of market volatilities on Ennostar and Sitronix 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 Ennostar with a short position of Sitronix Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ennostar and Sitronix Technology.
Diversification Opportunities for Ennostar and Sitronix Technology
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ennostar and Sitronix is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ennostar and Sitronix Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitronix Technology Corp and Ennostar 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 Ennostar are associated (or correlated) with Sitronix Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitronix Technology Corp has no effect on the direction of Ennostar i.e., Ennostar and Sitronix Technology go up and down completely randomly.
Pair Corralation between Ennostar and Sitronix Technology
Assuming the 90 days trading horizon Ennostar is expected to generate 2.38 times less return on investment than Sitronix Technology. In addition to that, Ennostar is 2.22 times more volatile than Sitronix Technology Corp. It trades about 0.04 of its total potential returns per unit of risk. Sitronix Technology Corp is currently generating about 0.21 per unit of volatility. If you would invest 20,650 in Sitronix Technology Corp on December 1, 2024 and sell it today you would earn a total of 1,100 from holding Sitronix Technology Corp or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ennostar vs. Sitronix Technology Corp
Performance |
| Timeline |
| Ennostar |
| Sitronix Technology Corp |
Ennostar and Sitronix Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ennostar and Sitronix Technology
The main advantage of trading using opposite Ennostar and Sitronix Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ennostar position performs unexpectedly, Sitronix 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 Sitronix Technology will offset losses from the drop in Sitronix Technology's long position.| Ennostar vs. Innolux Corp | Ennostar vs. United Renewable Energy | Ennostar vs. Acbel Polytech | Ennostar vs. Gigastorage Corp |
| Sitronix Technology vs. Novatek Microelectronics Corp | Sitronix Technology vs. FocalTech Systems Co | Sitronix Technology vs. Elan Microelectronics Corp | Sitronix Technology vs. Realtek Semiconductor Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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