Correlation Between Sunmax Biotechnology and M3 Technology
Can any of the company-specific risk be diversified away by investing in both Sunmax Biotechnology and M3 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 Sunmax Biotechnology and M3 Technology 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 M3 Technology, you can compare the effects of market volatilities on Sunmax Biotechnology and M3 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 Sunmax Biotechnology with a short position of M3 Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunmax Biotechnology and M3 Technology.
Diversification Opportunities for Sunmax Biotechnology and M3 Technology
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunmax and 6799 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sunmax Biotechnology Co and M3 Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M3 Technology 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 M3 Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M3 Technology has no effect on the direction of Sunmax Biotechnology i.e., Sunmax Biotechnology and M3 Technology go up and down completely randomly.
Pair Corralation between Sunmax Biotechnology and M3 Technology
Assuming the 90 days trading horizon Sunmax Biotechnology Co is expected to generate 0.36 times more return on investment than M3 Technology. However, Sunmax Biotechnology Co is 2.81 times less risky than M3 Technology. It trades about 0.14 of its potential returns per unit of risk. M3 Technology is currently generating about -0.1 per unit of risk. If you would invest 27,150 in Sunmax Biotechnology Co on September 3, 2024 and sell it today you would earn a total of 650.00 from holding Sunmax Biotechnology Co or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunmax Biotechnology Co vs. M3 Technology
Performance |
| Timeline |
| Sunmax Biotechnology |
| M3 Technology |
Sunmax Biotechnology and M3 Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunmax Biotechnology and M3 Technology
The main advantage of trading using opposite Sunmax Biotechnology and M3 Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunmax Biotechnology position performs unexpectedly, M3 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 M3 Technology will offset losses from the drop in M3 Technology's long position.| Sunmax Biotechnology vs. Symtek Automation Asia | Sunmax Biotechnology vs. WiseChip Semiconductor | Sunmax Biotechnology vs. Novatek Microelectronics Corp | Sunmax Biotechnology vs. Leader Electronics |
| M3 Technology vs. Shinkong Synthetic Fiber | M3 Technology vs. Jinan Acetate Chemical | M3 Technology vs. Mercuries Data Systems | M3 Technology vs. Double Bond Chemical |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |