Correlation Between Sunfar Computer and Xintec
Can any of the company-specific risk be diversified away by investing in both Sunfar Computer and Xintec 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 Xintec 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 Xintec, you can compare the effects of market volatilities on Sunfar Computer and Xintec 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 Xintec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunfar Computer and Xintec.
Diversification Opportunities for Sunfar Computer and Xintec
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sunfar and Xintec is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sunfar Computer Co and Xintec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xintec 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 Xintec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xintec has no effect on the direction of Sunfar Computer i.e., Sunfar Computer and Xintec go up and down completely randomly.
Pair Corralation between Sunfar Computer and Xintec
Assuming the 90 days trading horizon Sunfar Computer Co is expected to generate 0.13 times more return on investment than Xintec. However, Sunfar Computer Co is 7.88 times less risky than Xintec. It trades about -0.12 of its potential returns per unit of risk. Xintec is currently generating about -0.1 per unit of risk. If you would invest 1,610 in Sunfar Computer Co on September 4, 2024 and sell it today you would lose (20.00) from holding Sunfar Computer Co or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunfar Computer Co vs. Xintec
Performance |
| Timeline |
| Sunfar Computer |
| Xintec |
Sunfar Computer and Xintec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunfar Computer and Xintec
The main advantage of trading using opposite Sunfar Computer and Xintec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunfar Computer position performs unexpectedly, Xintec 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 Xintec will offset losses from the drop in Xintec's long position.| Sunfar Computer vs. Space Shuttle Hi Tech | Sunfar Computer vs. Ruentex Development Co | Sunfar Computer vs. Symtek Automation Asia | Sunfar Computer vs. CTCI Corp |
| Xintec vs. Taiwan Semiconductor Manufacturing | Xintec vs. Yang Ming Marine | Xintec vs. AU Optronics | Xintec vs. Innolux Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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