Correlation Between Sunfun Info and Addcn Technology
Can any of the company-specific risk be diversified away by investing in both Sunfun Info and Addcn Technology 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 Sunfun Info and Addcn Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunfun Info Co and Addcn Technology Co, you can compare the effects of market volatilities on Sunfun Info and Addcn Technology 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 Sunfun Info with a short position of Addcn Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunfun Info and Addcn Technology.
Diversification Opportunities for Sunfun Info and Addcn Technology
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sunfun and Addcn is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sunfun Info Co and Addcn Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Addcn Technology and Sunfun Info 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 Sunfun Info Co are associated (or correlated) with Addcn Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Addcn Technology has no effect on the direction of Sunfun Info i.e., Sunfun Info and Addcn Technology go up and down completely randomly.
Pair Corralation between Sunfun Info and Addcn Technology
Assuming the 90 days trading horizon Sunfun Info Co is expected to generate 4.74 times more return on investment than Addcn Technology. However, Sunfun Info is 4.74 times more volatile than Addcn Technology Co. It trades about 0.22 of its potential returns per unit of risk. Addcn Technology Co is currently generating about -0.12 per unit of risk. If you would invest 28,100 in Sunfun Info Co on August 25, 2024 and sell it today you would earn a total of 3,300 from holding Sunfun Info Co or generate 11.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunfun Info Co vs. Addcn Technology Co
Performance |
| Timeline |
| Sunfun Info |
| Addcn Technology |
Sunfun Info and Addcn Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunfun Info and Addcn Technology
The main advantage of trading using opposite Sunfun Info and Addcn Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunfun Info position performs unexpectedly, Addcn Technology 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 Addcn Technology will offset losses from the drop in Addcn Technology's long position.| Sunfun Info vs. Addcn Technology Co | Sunfun Info vs. PChome Online | Sunfun Info vs. Newretail Co | Sunfun Info vs. Taiwan Taomee Co |
| Addcn Technology vs. Century Iron And | Addcn Technology vs. Yieh United Steel | Addcn Technology vs. China Development Financial | Addcn Technology vs. Taichung Commercial Bank |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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