Correlation Between Sunmax Biotechnology and Tainet Communication
Can any of the company-specific risk be diversified away by investing in both Sunmax Biotechnology and Tainet Communication 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 Sunmax Biotechnology and Tainet Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunmax Biotechnology Co and Tainet Communication System, you can compare the effects of market volatilities on Sunmax Biotechnology and Tainet Communication 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 Sunmax Biotechnology with a short position of Tainet Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunmax Biotechnology and Tainet Communication.
Diversification Opportunities for Sunmax Biotechnology and Tainet Communication
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunmax and Tainet is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sunmax Biotechnology Co and Tainet Communication System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tainet Communication and Sunmax Biotechnology 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 Sunmax Biotechnology Co are associated (or correlated) with Tainet Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tainet Communication has no effect on the direction of Sunmax Biotechnology i.e., Sunmax Biotechnology and Tainet Communication go up and down completely randomly.
Pair Corralation between Sunmax Biotechnology and Tainet Communication
Assuming the 90 days trading horizon Sunmax Biotechnology Co is expected to generate 0.57 times more return on investment than Tainet Communication. However, Sunmax Biotechnology Co is 1.74 times less risky than Tainet Communication. It trades about -0.01 of its potential returns per unit of risk. Tainet Communication System is currently generating about -0.11 per unit of risk. If you would invest 28,200 in Sunmax Biotechnology Co on September 2, 2024 and sell it today you would lose (400.00) from holding Sunmax Biotechnology Co or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunmax Biotechnology Co vs. Tainet Communication System
Performance |
| Timeline |
| Sunmax Biotechnology |
| Tainet Communication |
Sunmax Biotechnology and Tainet Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunmax Biotechnology and Tainet Communication
The main advantage of trading using opposite Sunmax Biotechnology and Tainet Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunmax Biotechnology position performs unexpectedly, Tainet Communication 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 Tainet Communication will offset losses from the drop in Tainet Communication's long position.| Sunmax Biotechnology vs. Medigen Vaccine Biologics | Sunmax Biotechnology vs. TaiMed Biologics | Sunmax Biotechnology vs. Adimmune Corp | Sunmax Biotechnology vs. PharmaEngine |
| Tainet Communication vs. Shanghai Commercial Savings | Tainet Communication vs. Genovate Biotechnology Co | Tainet Communication vs. Tehmag Foods | Tainet Communication vs. Vate Technology Co |
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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