Correlation Between Capital Futures and Sinher Technology
Can any of the company-specific risk be diversified away by investing in both Capital Futures and Sinher 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 Capital Futures and Sinher Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Futures Corp and Sinher Technology, you can compare the effects of market volatilities on Capital Futures and Sinher 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 Capital Futures with a short position of Sinher Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Futures and Sinher Technology.
Diversification Opportunities for Capital Futures and Sinher Technology
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Capital and Sinher is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Capital Futures Corp and Sinher Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinher Technology and Capital Futures 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 Capital Futures Corp are associated (or correlated) with Sinher Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinher Technology has no effect on the direction of Capital Futures i.e., Capital Futures and Sinher Technology go up and down completely randomly.
Pair Corralation between Capital Futures and Sinher Technology
Assuming the 90 days trading horizon Capital Futures Corp is expected to generate 1.28 times more return on investment than Sinher Technology. However, Capital Futures is 1.28 times more volatile than Sinher Technology. It trades about 0.09 of its potential returns per unit of risk. Sinher Technology is currently generating about -0.02 per unit of risk. If you would invest 3,695 in Capital Futures Corp on August 30, 2024 and sell it today you would earn a total of 2,115 from holding Capital Futures Corp or generate 57.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Futures Corp vs. Sinher Technology
Performance |
| Timeline |
| Capital Futures Corp |
| Sinher Technology |
Capital Futures and Sinher Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Futures and Sinher Technology
The main advantage of trading using opposite Capital Futures and Sinher Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Futures position performs unexpectedly, Sinher 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 Sinher Technology will offset losses from the drop in Sinher Technology's long position.| Capital Futures vs. Hung Sheng Construction | Capital Futures vs. Mercuries Life Insurance | Capital Futures vs. Sinher Technology | Capital Futures vs. YungShin Global Holding |
| Sinher Technology vs. Hsing Ta Cement | Sinher Technology vs. Capital Futures Corp | Sinher Technology vs. First Insurance Co | Sinher Technology vs. Yem Chio Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |