Correlation Between Chicony Power and Sun Max
Can any of the company-specific risk be diversified away by investing in both Chicony Power 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 Chicony Power and Sun Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicony Power Technology and Sun Max Tech, you can compare the effects of market volatilities on Chicony Power 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 Chicony Power with a short position of Sun Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicony Power and Sun Max.
Diversification Opportunities for Chicony Power and Sun Max
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chicony and Sun is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Chicony Power Technology 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 Chicony Power 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 Chicony Power Technology 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 Chicony Power i.e., Chicony Power and Sun Max go up and down completely randomly.
Pair Corralation between Chicony Power and Sun Max
Assuming the 90 days trading horizon Chicony Power Technology is expected to under-perform the Sun Max. But the stock apears to be less risky and, when comparing its historical volatility, Chicony Power Technology is 1.53 times less risky than Sun Max. The stock trades about -0.22 of its potential returns per unit of risk. The Sun Max Tech is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,070 in Sun Max Tech on August 26, 2024 and sell it today you would earn a total of 230.00 from holding Sun Max Tech or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chicony Power Technology vs. Sun Max Tech
Performance |
| Timeline |
| Chicony Power Technology |
| Sun Max Tech |
Chicony Power and Sun Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicony Power and Sun Max
The main advantage of trading using opposite Chicony Power and Sun Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicony Power 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.| Chicony Power vs. Coretronic | Chicony Power vs. Merry Electronics Co | Chicony Power vs. Sampo Corp | Chicony Power vs. Taiwan Sanyo Electric |
| Sun Max vs. Quanta Computer | Sun Max vs. Wiwynn Corp | Sun Max vs. Getac Technology Corp | Sun Max vs. IEI Integration 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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