Correlation Between Sixxon Tech and Gloria Material
Can any of the company-specific risk be diversified away by investing in both Sixxon Tech and Gloria Material 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 Sixxon Tech and Gloria Material into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixxon Tech Co and Gloria Material Technology, you can compare the effects of market volatilities on Sixxon Tech and Gloria Material 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 Sixxon Tech with a short position of Gloria Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixxon Tech and Gloria Material.
Diversification Opportunities for Sixxon Tech and Gloria Material
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sixxon and Gloria is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sixxon Tech Co and Gloria Material Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gloria Material Tech and Sixxon Tech 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 Sixxon Tech Co are associated (or correlated) with Gloria Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gloria Material Tech has no effect on the direction of Sixxon Tech i.e., Sixxon Tech and Gloria Material go up and down completely randomly.
Pair Corralation between Sixxon Tech and Gloria Material
Assuming the 90 days trading horizon Sixxon Tech Co is expected to generate 1.51 times more return on investment than Gloria Material. However, Sixxon Tech is 1.51 times more volatile than Gloria Material Technology. It trades about 0.09 of its potential returns per unit of risk. Gloria Material Technology is currently generating about 0.06 per unit of risk. If you would invest 11,153 in Sixxon Tech Co on August 27, 2024 and sell it today you would earn a total of 12,847 from holding Sixxon Tech Co or generate 115.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 68.33% |
| Values | Daily Returns |
Sixxon Tech Co vs. Gloria Material Technology
Performance |
| Timeline |
| Sixxon Tech |
| Gloria Material Tech |
Sixxon Tech and Gloria Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixxon Tech and Gloria Material
The main advantage of trading using opposite Sixxon Tech and Gloria Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixxon Tech position performs unexpectedly, Gloria Material 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 Gloria Material will offset losses from the drop in Gloria Material's long position.| Sixxon Tech vs. Gloria Material Technology | Sixxon Tech vs. Zhen Ding Technology | Sixxon Tech vs. Sitronix Technology Corp | Sixxon Tech vs. Asmedia Technology |
| Gloria Material vs. China Steel Corp | Gloria Material vs. Chung Hung Steel | Gloria Material vs. Tung Ho Steel | Gloria Material vs. Feng Hsin Steel |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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