Correlation Between Sinher Technology and Capital Futures
Can any of the company-specific risk be diversified away by investing in both Sinher Technology and Capital Futures 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 Sinher Technology and Capital Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinher Technology and Capital Futures Corp, you can compare the effects of market volatilities on Sinher Technology and Capital Futures 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 Sinher Technology with a short position of Capital Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinher Technology and Capital Futures.
Diversification Opportunities for Sinher Technology and Capital Futures
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinher and Capital is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sinher Technology and Capital Futures Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Futures Corp and Sinher 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 Sinher Technology are associated (or correlated) with Capital Futures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Futures Corp has no effect on the direction of Sinher Technology i.e., Sinher Technology and Capital Futures go up and down completely randomly.
Pair Corralation between Sinher Technology and Capital Futures
Assuming the 90 days trading horizon Sinher Technology is expected to under-perform the Capital Futures. But the stock apears to be less risky and, when comparing its historical volatility, Sinher Technology is 1.17 times less risky than Capital Futures. The stock trades about -0.03 of its potential returns per unit of risk. The Capital Futures Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 5,990 in Capital Futures Corp on November 28, 2024 and sell it today you would lose (330.00) from holding Capital Futures Corp or give up 5.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinher Technology vs. Capital Futures Corp
Performance |
| Timeline |
| Sinher Technology |
| Capital Futures Corp |
Sinher Technology and Capital Futures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinher Technology and Capital Futures
The main advantage of trading using opposite Sinher Technology and Capital Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinher Technology position performs unexpectedly, Capital Futures 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 Capital Futures will offset losses from the drop in Capital Futures' long position.| Sinher Technology vs. Hsing Ta Cement | Sinher Technology vs. Capital Futures Corp | Sinher Technology vs. First Insurance Co | Sinher Technology vs. Yem Chio Co |
| Capital Futures vs. Hung Sheng Construction | Capital Futures vs. Mercuries Life Insurance | Capital Futures vs. Sinher Technology | Capital Futures vs. YungShin Global Holding |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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