Correlation Between Sunmax Biotechnology and Cameo Communications
Can any of the company-specific risk be diversified away by investing in both Sunmax Biotechnology and Cameo Communications 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 Cameo Communications 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 Cameo Communications, you can compare the effects of market volatilities on Sunmax Biotechnology and Cameo Communications 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 Cameo Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunmax Biotechnology and Cameo Communications.
Diversification Opportunities for Sunmax Biotechnology and Cameo Communications
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunmax and Cameo is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sunmax Biotechnology Co and Cameo Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cameo Communications 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 Cameo Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cameo Communications has no effect on the direction of Sunmax Biotechnology i.e., Sunmax Biotechnology and Cameo Communications go up and down completely randomly.
Pair Corralation between Sunmax Biotechnology and Cameo Communications
Assuming the 90 days trading horizon Sunmax Biotechnology Co is expected to generate 1.02 times more return on investment than Cameo Communications. However, Sunmax Biotechnology is 1.02 times more volatile than Cameo Communications. It trades about 0.05 of its potential returns per unit of risk. Cameo Communications is currently generating about -0.03 per unit of risk. If you would invest 25,540 in Sunmax Biotechnology Co on January 17, 2025 and sell it today you would earn a total of 16,160 from holding Sunmax Biotechnology Co or generate 63.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunmax Biotechnology Co vs. Cameo Communications
Performance |
| Timeline |
| Sunmax Biotechnology |
| Cameo Communications |
Sunmax Biotechnology and Cameo Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunmax Biotechnology and Cameo Communications
The main advantage of trading using opposite Sunmax Biotechnology and Cameo Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunmax Biotechnology position performs unexpectedly, Cameo Communications 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 Cameo Communications will offset losses from the drop in Cameo Communications' long position.| Sunmax Biotechnology vs. OBI Pharma | Sunmax Biotechnology vs. Tanvex BioPharma | Sunmax Biotechnology vs. Ruentex Development Co | Sunmax Biotechnology vs. Symtek Automation Asia |
| Cameo Communications vs. Hon Hai Precision | Cameo Communications vs. Taiwan Semiconductor Manufacturing | Cameo Communications vs. Pegatron Corp | Cameo Communications vs. Compal Electronics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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