Correlation Between San Fu and Generalplus Technology
Can any of the company-specific risk be diversified away by investing in both San Fu and Generalplus 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 San Fu and Generalplus Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between San Fu Chemical and Generalplus Technology, you can compare the effects of market volatilities on San Fu and Generalplus 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 San Fu with a short position of Generalplus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Fu and Generalplus Technology.
Diversification Opportunities for San Fu and Generalplus Technology
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between San and Generalplus is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding San Fu Chemical and Generalplus Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generalplus Technology and San Fu 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 San Fu Chemical are associated (or correlated) with Generalplus Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generalplus Technology has no effect on the direction of San Fu i.e., San Fu and Generalplus Technology go up and down completely randomly.
Pair Corralation between San Fu and Generalplus Technology
Assuming the 90 days trading horizon San Fu Chemical is expected to under-perform the Generalplus Technology. In addition to that, San Fu is 1.05 times more volatile than Generalplus Technology. It trades about -0.01 of its total potential returns per unit of risk. Generalplus Technology is currently generating about 0.1 per unit of volatility. If you would invest 5,140 in Generalplus Technology on December 1, 2024 and sell it today you would earn a total of 120.00 from holding Generalplus Technology or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
San Fu Chemical vs. Generalplus Technology
Performance |
| Timeline |
| San Fu Chemical |
| Generalplus Technology |
San Fu and Generalplus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Fu and Generalplus Technology
The main advantage of trading using opposite San Fu and Generalplus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Fu position performs unexpectedly, Generalplus 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 Generalplus Technology will offset losses from the drop in Generalplus Technology's long position.| San Fu vs. Nuvoton Technology Corp | San Fu vs. Shiny Chemical Industrial | San Fu vs. Jinan Acetate Chemical | San Fu vs. Coremax Corp |
| Generalplus Technology vs. Holtek Semiconductor | Generalplus Technology vs. Nuvoton Technology Corp | Generalplus Technology vs. Sonix Technology Co | Generalplus Technology vs. Global Unichip 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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