Correlation Between Generalplus Technology and San Fu
Can any of the company-specific risk be diversified away by investing in both Generalplus Technology and San Fu 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 Generalplus Technology and San Fu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Generalplus Technology and San Fu Chemical, you can compare the effects of market volatilities on Generalplus Technology and San Fu 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 Generalplus Technology with a short position of San Fu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Generalplus Technology and San Fu.
Diversification Opportunities for Generalplus Technology and San Fu
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Generalplus and San is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Generalplus Technology and San Fu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Fu Chemical and Generalplus 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 Generalplus Technology are associated (or correlated) with San Fu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Fu Chemical has no effect on the direction of Generalplus Technology i.e., Generalplus Technology and San Fu go up and down completely randomly.
Pair Corralation between Generalplus Technology and San Fu
Assuming the 90 days trading horizon Generalplus Technology is expected to under-perform the San Fu. In addition to that, Generalplus Technology is 1.01 times more volatile than San Fu Chemical. It trades about -0.07 of its total potential returns per unit of risk. San Fu Chemical is currently generating about 0.0 per unit of volatility. If you would invest 14,050 in San Fu Chemical on September 3, 2024 and sell it today you would lose (650.00) from holding San Fu Chemical or give up 4.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Generalplus Technology vs. San Fu Chemical
Performance |
| Timeline |
| Generalplus Technology |
| San Fu Chemical |
Generalplus Technology and San Fu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Generalplus Technology and San Fu
The main advantage of trading using opposite Generalplus Technology and San Fu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Generalplus Technology position performs unexpectedly, San Fu 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 San Fu will offset losses from the drop in San Fu's long position.| Generalplus Technology vs. Holtek Semiconductor | Generalplus Technology vs. Nuvoton Technology Corp | Generalplus Technology vs. Sonix Technology Co | Generalplus Technology vs. Global Unichip Corp |
| San Fu vs. Delta Electronics | San Fu vs. China Steel Chemical | San Fu vs. WiseChip Semiconductor | San Fu vs. Novatek Microelectronics 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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