Correlation Between Gloria Material and Sixxon Tech
Can any of the company-specific risk be diversified away by investing in both Gloria Material and Sixxon Tech 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 Gloria Material and Sixxon Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gloria Material Technology and Sixxon Tech Co, you can compare the effects of market volatilities on Gloria Material and Sixxon Tech 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 Gloria Material with a short position of Sixxon Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gloria Material and Sixxon Tech.
Diversification Opportunities for Gloria Material and Sixxon Tech
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gloria and Sixxon is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Gloria Material Technology and Sixxon Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixxon Tech and Gloria Material 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 Gloria Material Technology are associated (or correlated) with Sixxon Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixxon Tech has no effect on the direction of Gloria Material i.e., Gloria Material and Sixxon Tech go up and down completely randomly.
Pair Corralation between Gloria Material and Sixxon Tech
Assuming the 90 days trading horizon Gloria Material Technology is expected to under-perform the Sixxon Tech. But the stock apears to be less risky and, when comparing its historical volatility, Gloria Material Technology is 1.72 times less risky than Sixxon Tech. The stock trades about 0.0 of its potential returns per unit of risk. The Sixxon Tech Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 11,153 in Sixxon Tech Co on August 27, 2024 and sell it today you would earn a total of 12,847 from holding Sixxon Tech Co or generate 115.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 84.75% |
| Values | Daily Returns |
Gloria Material Technology vs. Sixxon Tech Co
Performance |
| Timeline |
| Gloria Material Tech |
| Sixxon Tech |
Gloria Material and Sixxon Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gloria Material and Sixxon Tech
The main advantage of trading using opposite Gloria Material and Sixxon Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gloria Material position performs unexpectedly, Sixxon Tech 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 Sixxon Tech will offset losses from the drop in Sixxon Tech's long position.| Gloria Material vs. China Steel Corp | Gloria Material vs. Chung Hung Steel | Gloria Material vs. Tung Ho Steel | Gloria Material vs. Feng Hsin Steel |
| Sixxon Tech vs. Gloria Material Technology | Sixxon Tech vs. Zhen Ding Technology | Sixxon Tech vs. Sitronix Technology Corp | Sixxon Tech vs. Asmedia Technology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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