Correlation Between EA Technique and SFP Tech
Can any of the company-specific risk be diversified away by investing in both EA Technique and SFP 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 EA Technique and SFP Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Technique M and SFP Tech Holdings, you can compare the effects of market volatilities on EA Technique and SFP 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 EA Technique with a short position of SFP Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Technique and SFP Tech.
Diversification Opportunities for EA Technique and SFP Tech
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 5259 and SFP is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding EA Technique M and SFP Tech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFP Tech Holdings and EA Technique 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 EA Technique M are associated (or correlated) with SFP Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFP Tech Holdings has no effect on the direction of EA Technique i.e., EA Technique and SFP Tech go up and down completely randomly.
Pair Corralation between EA Technique and SFP Tech
Assuming the 90 days trading horizon EA Technique M is expected to generate 1.8 times more return on investment than SFP Tech. However, EA Technique is 1.8 times more volatile than SFP Tech Holdings. It trades about 0.06 of its potential returns per unit of risk. SFP Tech Holdings is currently generating about -0.01 per unit of risk. If you would invest 16.00 in EA Technique M on September 1, 2024 and sell it today you would earn a total of 14.00 from holding EA Technique M or generate 87.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Technique M vs. SFP Tech Holdings
Performance |
| Timeline |
| EA Technique M |
| SFP Tech Holdings |
EA Technique and SFP Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Technique and SFP Tech
The main advantage of trading using opposite EA Technique and SFP Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Technique position performs unexpectedly, SFP 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 SFP Tech will offset losses from the drop in SFP Tech's long position.| EA Technique vs. Kobay Tech Bhd | EA Technique vs. CPE Technology Berhad | EA Technique vs. Star Media Group | EA Technique vs. Resintech Bhd |
| SFP Tech vs. Lotte Chemical Titan | SFP Tech vs. Sports Toto Berhad | SFP Tech vs. Media Prima Bhd | SFP Tech vs. YX Precious Metals |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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