Correlation Between STL Technology and Sporton International
Can any of the company-specific risk be diversified away by investing in both STL Technology and Sporton International 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 Sporton International 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 Sporton International, you can compare the effects of market volatilities on STL Technology and Sporton International 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 Sporton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of STL Technology and Sporton International.
Diversification Opportunities for STL Technology and Sporton International
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STL and Sporton is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding STL Technology Co and Sporton International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sporton International 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 Sporton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sporton International has no effect on the direction of STL Technology i.e., STL Technology and Sporton International go up and down completely randomly.
Pair Corralation between STL Technology and Sporton International
Assuming the 90 days trading horizon STL Technology Co is expected to generate 2.11 times more return on investment than Sporton International. However, STL Technology is 2.11 times more volatile than Sporton International. It trades about 0.14 of its potential returns per unit of risk. Sporton International is currently generating about -0.05 per unit of risk. If you would invest 2,990 in STL Technology Co on September 14, 2024 and sell it today you would earn a total of 2,370 from holding STL Technology Co or generate 79.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STL Technology Co vs. Sporton International
Performance |
| Timeline |
| STL Technology |
| Sporton International |
STL Technology and Sporton International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STL Technology and Sporton International
The main advantage of trading using opposite STL Technology and Sporton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STL Technology position performs unexpectedly, Sporton International 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 Sporton International will offset losses from the drop in Sporton International's long position.| STL Technology vs. Voltronic Power Technology | STL Technology vs. Advanced Energy Solution | STL Technology vs. Simplo Technology Co | STL Technology vs. Amtran Technology Co |
| Sporton International vs. Yi Jinn Industrial | Sporton International vs. Skardin Industrial | Sporton International vs. Hunya Foods Co | Sporton International vs. Chung Hwa Food |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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