Correlation Between Sunfar Computer and FDC International
Can any of the company-specific risk be diversified away by investing in both Sunfar Computer and FDC International 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 FDC International 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 FDC International Hotels, you can compare the effects of market volatilities on Sunfar Computer and FDC International 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 FDC International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunfar Computer and FDC International.
Diversification Opportunities for Sunfar Computer and FDC International
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunfar and FDC is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sunfar Computer Co and FDC International Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDC International Hotels 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 FDC International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDC International Hotels has no effect on the direction of Sunfar Computer i.e., Sunfar Computer and FDC International go up and down completely randomly.
Pair Corralation between Sunfar Computer and FDC International
Assuming the 90 days trading horizon Sunfar Computer Co is expected to under-perform the FDC International. But the stock apears to be less risky and, when comparing its historical volatility, Sunfar Computer Co is 2.63 times less risky than FDC International. The stock trades about -0.06 of its potential returns per unit of risk. The FDC International Hotels is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,900 in FDC International Hotels on August 31, 2024 and sell it today you would earn a total of 140.00 from holding FDC International Hotels or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunfar Computer Co vs. FDC International Hotels
Performance |
| Timeline |
| Sunfar Computer |
| FDC International Hotels |
Sunfar Computer and FDC International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunfar Computer and FDC International
The main advantage of trading using opposite Sunfar Computer and FDC International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunfar Computer position performs unexpectedly, FDC International 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 FDC International will offset losses from the drop in FDC International's long position.| Sunfar Computer vs. Auras Technology Co | Sunfar Computer vs. TUL Corporation | Sunfar Computer vs. Space Shuttle Hi Tech |
| FDC International vs. Formosa International Hotels | FDC International vs. My Humble House | FDC International vs. Wanhwa Enterprise Co | FDC International vs. Gourmet Master 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |