Correlation Between STL Technology and Sun Sea
Can any of the company-specific risk be diversified away by investing in both STL Technology and Sun Sea 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 Sun Sea 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 Sun Sea Construction, you can compare the effects of market volatilities on STL Technology and Sun Sea 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 Sun Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of STL Technology and Sun Sea.
Diversification Opportunities for STL Technology and Sun Sea
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between STL and Sun is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding STL Technology Co and Sun Sea Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Sea Construction 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 Sun Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Sea Construction has no effect on the direction of STL Technology i.e., STL Technology and Sun Sea go up and down completely randomly.
Pair Corralation between STL Technology and Sun Sea
Assuming the 90 days trading horizon STL Technology Co is expected to generate 1.12 times more return on investment than Sun Sea. However, STL Technology is 1.12 times more volatile than Sun Sea Construction. It trades about 0.05 of its potential returns per unit of risk. Sun Sea Construction is currently generating about -0.05 per unit of risk. If you would invest 4,256 in STL Technology Co on September 2, 2024 and sell it today you would earn a total of 1,794 from holding STL Technology Co or generate 42.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STL Technology Co vs. Sun Sea Construction
Performance |
| Timeline |
| STL Technology |
| Sun Sea Construction |
STL Technology and Sun Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STL Technology and Sun Sea
The main advantage of trading using opposite STL Technology and Sun Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STL Technology position performs unexpectedly, Sun Sea 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 Sun Sea will offset losses from the drop in Sun Sea's long position.| STL Technology vs. Simplo Technology Co | STL Technology vs. Dynapack International Technology | STL Technology vs. Celxpert Energy | STL Technology vs. C Tech United |
| Sun Sea vs. Ruentex Development Co | Sun Sea vs. United Integrated Services | Sun Sea vs. CTCI Corp | Sun Sea vs. Continental Holdings 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |