Correlation Between TUL and Sun Max
Can any of the company-specific risk be diversified away by investing in both TUL 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 TUL and Sun Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TUL Corporation and Sun Max Tech, you can compare the effects of market volatilities on TUL 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 TUL with a short position of Sun Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of TUL and Sun Max.
Diversification Opportunities for TUL and Sun Max
Very weak diversification
The 3 months correlation between TUL and Sun is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding TUL Corp. 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 TUL 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 TUL Corporation 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 TUL i.e., TUL and Sun Max go up and down completely randomly.
Pair Corralation between TUL and Sun Max
If you would invest 4,681 in Sun Max Tech on September 12, 2024 and sell it today you would earn a total of 459.00 from holding Sun Max Tech or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.41% |
| Values | Daily Returns |
TUL Corp. vs. Sun Max Tech
Performance |
| Timeline |
| TUL Corporation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Sun Max Tech |
TUL and Sun Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TUL and Sun Max
The main advantage of trading using opposite TUL and Sun Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TUL 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.| TUL vs. Fubon Financial Holding | TUL vs. Wei Chuan Foods | TUL vs. First Insurance Co | TUL vs. Sinopac Financial Holdings |
| Sun Max vs. ASRock Inc | Sun Max vs. Ko Ja Cayman | Sun Max vs. Chenbro Micom Co | Sun Max vs. Leadtek Research |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |