Correlation Between InnoDisk and Sun Max
Can any of the company-specific risk be diversified away by investing in both InnoDisk and Sun Max 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 InnoDisk and Sun Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InnoDisk and Sun Max Tech, you can compare the effects of market volatilities on InnoDisk and Sun Max 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 InnoDisk with a short position of Sun Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of InnoDisk and Sun Max.
Diversification Opportunities for InnoDisk and Sun Max
Very good diversification
The 3 months correlation between InnoDisk and Sun is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding InnoDisk and Sun Max Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Max Tech and InnoDisk 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 InnoDisk are associated (or correlated) with Sun Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Max Tech has no effect on the direction of InnoDisk i.e., InnoDisk and Sun Max go up and down completely randomly.
Pair Corralation between InnoDisk and Sun Max
Assuming the 90 days trading horizon InnoDisk is expected to generate 1.16 times more return on investment than Sun Max. However, InnoDisk is 1.16 times more volatile than Sun Max Tech. It trades about 0.04 of its potential returns per unit of risk. Sun Max Tech is currently generating about 0.04 per unit of risk. If you would invest 17,577 in InnoDisk on August 26, 2024 and sell it today you would earn a total of 5,923 from holding InnoDisk or generate 33.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
InnoDisk vs. Sun Max Tech
Performance |
| Timeline |
| InnoDisk |
| Sun Max Tech |
InnoDisk and Sun Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InnoDisk and Sun Max
The main advantage of trading using opposite InnoDisk and Sun Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InnoDisk position performs unexpectedly, Sun Max 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 Sun Max will offset losses from the drop in Sun Max's long position.| InnoDisk vs. Quanta Computer | InnoDisk vs. Wiwynn Corp | InnoDisk vs. Getac Technology Corp | InnoDisk vs. IEI Integration Corp |
| Sun Max vs. Quanta Computer | Sun Max vs. Wiwynn Corp | Sun Max vs. Getac Technology Corp | Sun Max vs. IEI Integration 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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