Correlation Between STL Technology and SynCore Biotechnology
Can any of the company-specific risk be diversified away by investing in both STL Technology and SynCore Biotechnology 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 STL Technology and SynCore Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STL Technology Co and SynCore Biotechnology Co, you can compare the effects of market volatilities on STL Technology and SynCore Biotechnology 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 STL Technology with a short position of SynCore Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of STL Technology and SynCore Biotechnology.
Diversification Opportunities for STL Technology and SynCore Biotechnology
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STL and SynCore is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding STL Technology Co and SynCore Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SynCore Biotechnology and STL Technology 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 STL Technology Co are associated (or correlated) with SynCore Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SynCore Biotechnology has no effect on the direction of STL Technology i.e., STL Technology and SynCore Biotechnology go up and down completely randomly.
Pair Corralation between STL Technology and SynCore Biotechnology
Assuming the 90 days trading horizon STL Technology Co is expected to generate 1.99 times more return on investment than SynCore Biotechnology. However, STL Technology is 1.99 times more volatile than SynCore Biotechnology Co. It trades about 0.17 of its potential returns per unit of risk. SynCore Biotechnology Co is currently generating about 0.08 per unit of risk. If you would invest 6,710 in STL Technology Co on November 27, 2024 and sell it today you would earn a total of 570.00 from holding STL Technology Co or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STL Technology Co vs. SynCore Biotechnology Co
Performance |
| Timeline |
| STL Technology |
| SynCore Biotechnology |
STL Technology and SynCore Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STL Technology and SynCore Biotechnology
The main advantage of trading using opposite STL Technology and SynCore Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STL Technology position performs unexpectedly, SynCore Biotechnology 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 SynCore Biotechnology will offset losses from the drop in SynCore Biotechnology's long position.| STL Technology vs. Silergy Corp | STL Technology vs. Airtac International Group | STL Technology vs. Advantech Co | STL Technology vs. Sinbon Electronics Co |
| SynCore Biotechnology vs. International CSRC Investment | SynCore Biotechnology vs. Pacific Hospital Supply | SynCore Biotechnology vs. Zhen Ding Technology | SynCore Biotechnology vs. Landis Taipei Hotel |
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 Stocks Directory module to find actively traded stocks across global markets.
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