Correlation Between Aurelius Technologies and Sunzen Biotech
Can any of the company-specific risk be diversified away by investing in both Aurelius Technologies and Sunzen Biotech 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 Aurelius Technologies and Sunzen Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelius Technologies Bhd and Sunzen Biotech Bhd, you can compare the effects of market volatilities on Aurelius Technologies and Sunzen Biotech 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 Aurelius Technologies with a short position of Sunzen Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelius Technologies and Sunzen Biotech.
Diversification Opportunities for Aurelius Technologies and Sunzen Biotech
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aurelius and Sunzen is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aurelius Technologies Bhd and Sunzen Biotech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunzen Biotech Bhd and Aurelius Technologies 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 Aurelius Technologies Bhd are associated (or correlated) with Sunzen Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunzen Biotech Bhd has no effect on the direction of Aurelius Technologies i.e., Aurelius Technologies and Sunzen Biotech go up and down completely randomly.
Pair Corralation between Aurelius Technologies and Sunzen Biotech
Assuming the 90 days trading horizon Aurelius Technologies is expected to generate 2.93 times less return on investment than Sunzen Biotech. But when comparing it to its historical volatility, Aurelius Technologies Bhd is 1.17 times less risky than Sunzen Biotech. It trades about 0.02 of its potential returns per unit of risk. Sunzen Biotech Bhd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Sunzen Biotech Bhd on November 19, 2024 and sell it today you would earn a total of 9.00 from holding Sunzen Biotech Bhd or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurelius Technologies Bhd vs. Sunzen Biotech Bhd
Performance |
| Timeline |
| Aurelius Technologies Bhd |
| Sunzen Biotech Bhd |
Aurelius Technologies and Sunzen Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurelius Technologies and Sunzen Biotech
The main advantage of trading using opposite Aurelius Technologies and Sunzen Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelius Technologies position performs unexpectedly, Sunzen Biotech 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 Sunzen Biotech will offset losses from the drop in Sunzen Biotech's long position.| Aurelius Technologies vs. Hong Leong Bank | Aurelius Technologies vs. CPE Technology Berhad | Aurelius Technologies vs. Systech Bhd | Aurelius Technologies vs. Magni Tech Industries |
| Sunzen Biotech vs. Icon Offshore Bhd | Sunzen Biotech vs. Lotte Chemical Titan | Sunzen Biotech vs. Leader Steel Holdings | Sunzen Biotech vs. BP Plastics 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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