Correlation Between Feature Integration and Sun Max
Can any of the company-specific risk be diversified away by investing in both Feature Integration and Sun Max 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 Feature Integration and Sun Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feature Integration Technology and Sun Max Tech, you can compare the effects of market volatilities on Feature Integration and Sun Max 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 Feature Integration with a short position of Sun Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feature Integration and Sun Max.
Diversification Opportunities for Feature Integration and Sun Max
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Feature and Sun is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Feature Integration Technology and Sun Max Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Max Tech and Feature Integration 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 Feature Integration Technology are associated (or correlated) with Sun Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Max Tech has no effect on the direction of Feature Integration i.e., Feature Integration and Sun Max go up and down completely randomly.
Pair Corralation between Feature Integration and Sun Max
Assuming the 90 days trading horizon Feature Integration Technology is expected to generate 0.92 times more return on investment than Sun Max. However, Feature Integration Technology is 1.08 times less risky than Sun Max. It trades about 0.02 of its potential returns per unit of risk. Sun Max Tech is currently generating about 0.01 per unit of risk. If you would invest 6,238 in Feature Integration Technology on October 28, 2024 and sell it today you would earn a total of 442.00 from holding Feature Integration Technology or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feature Integration Technology vs. Sun Max Tech
Performance |
| Timeline |
| Feature Integration |
| Sun Max Tech |
Feature Integration and Sun Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feature Integration and Sun Max
The main advantage of trading using opposite Feature Integration and Sun Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feature Integration position performs unexpectedly, Sun Max 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 Max will offset losses from the drop in Sun Max's long position.| Feature Integration vs. SS Healthcare Holding | Feature Integration vs. Sporton International | Feature Integration vs. RDC Semiconductor Co | Feature Integration vs. Chi Hua Fitness |
| Sun Max vs. ASRock Inc | Sun Max vs. Ko Ja Cayman | Sun Max vs. Chenbro Micom Co | Sun Max vs. Leadtek Research |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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