Correlation Between Sunfar Computer and Chang Type
Can any of the company-specific risk be diversified away by investing in both Sunfar Computer and Chang Type 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 Sunfar Computer and Chang Type into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunfar Computer Co and Chang Type Industrial, you can compare the effects of market volatilities on Sunfar Computer and Chang Type 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 Sunfar Computer with a short position of Chang Type. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunfar Computer and Chang Type.
Diversification Opportunities for Sunfar Computer and Chang Type
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sunfar and Chang is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Sunfar Computer Co and Chang Type Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chang Type Industrial and Sunfar Computer 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 Sunfar Computer Co are associated (or correlated) with Chang Type. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chang Type Industrial has no effect on the direction of Sunfar Computer i.e., Sunfar Computer and Chang Type go up and down completely randomly.
Pair Corralation between Sunfar Computer and Chang Type
Assuming the 90 days trading horizon Sunfar Computer Co is expected to generate 0.47 times more return on investment than Chang Type. However, Sunfar Computer Co is 2.13 times less risky than Chang Type. It trades about 0.02 of its potential returns per unit of risk. Chang Type Industrial is currently generating about -0.05 per unit of risk. If you would invest 1,560 in Sunfar Computer Co on September 14, 2024 and sell it today you would earn a total of 40.00 from holding Sunfar Computer Co or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Sunfar Computer Co vs. Chang Type Industrial
Performance |
| Timeline |
| Sunfar Computer |
| Chang Type Industrial |
Sunfar Computer and Chang Type Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunfar Computer and Chang Type
The main advantage of trading using opposite Sunfar Computer and Chang Type positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunfar Computer position performs unexpectedly, Chang Type 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 Chang Type will offset losses from the drop in Chang Type's long position.| Sunfar Computer vs. Healthconn Corp | Sunfar Computer vs. International CSRC Investment | Sunfar Computer vs. Grand Ocean Retail | Sunfar Computer vs. An Shin Food Services |
| Chang Type vs. Sunfar Computer Co | Chang Type vs. Ambassador Hotel | Chang Type vs. Arima Communications Corp | Chang Type vs. U Media Communications |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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