Correlation Between Etron Technology and Sino American
Can any of the company-specific risk be diversified away by investing in both Etron Technology and Sino American 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 Etron Technology and Sino American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Etron Technology and Sino American Silicon Products, you can compare the effects of market volatilities on Etron Technology and Sino American 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 Etron Technology with a short position of Sino American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Etron Technology and Sino American.
Diversification Opportunities for Etron Technology and Sino American
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Etron and Sino is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Etron Technology and Sino American Silicon Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino American Silicon and Etron Technology 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 Etron Technology are associated (or correlated) with Sino American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino American Silicon has no effect on the direction of Etron Technology i.e., Etron Technology and Sino American go up and down completely randomly.
Pair Corralation between Etron Technology and Sino American
Assuming the 90 days trading horizon Etron Technology is expected to under-perform the Sino American. In addition to that, Etron Technology is 1.39 times more volatile than Sino American Silicon Products. It trades about -0.04 of its total potential returns per unit of risk. Sino American Silicon Products is currently generating about -0.03 per unit of volatility. If you would invest 17,500 in Sino American Silicon Products on September 15, 2024 and sell it today you would lose (2,700) from holding Sino American Silicon Products or give up 15.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Etron Technology vs. Sino American Silicon Products
Performance |
| Timeline |
| Etron Technology |
| Sino American Silicon |
Etron Technology and Sino American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Etron Technology and Sino American
The main advantage of trading using opposite Etron Technology and Sino American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Etron Technology position performs unexpectedly, Sino American 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 Sino American will offset losses from the drop in Sino American's long position.| Etron Technology vs. Sino American Silicon Products | Etron Technology vs. Elan Microelectronics Corp | Etron Technology vs. Greatek Electronics | Etron Technology vs. Ruentex Development Co |
| Sino American vs. GlobalWafers Co | Sino American vs. Wafer Works | Sino American vs. Motech Industries Co | Sino American vs. WIN Semiconductors |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |