Correlation Between Sun Max and Azion
Can any of the company-specific risk be diversified away by investing in both Sun Max and Azion 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 Sun Max and Azion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Max Tech and Azion, you can compare the effects of market volatilities on Sun Max and Azion 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 Sun Max with a short position of Azion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Max and Azion.
Diversification Opportunities for Sun Max and Azion
Very good diversification
The 3 months correlation between Sun and Azion is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sun Max Tech and Azion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azion and Sun Max 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 Sun Max Tech are associated (or correlated) with Azion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azion has no effect on the direction of Sun Max i.e., Sun Max and Azion go up and down completely randomly.
Pair Corralation between Sun Max and Azion
Assuming the 90 days trading horizon Sun Max Tech is expected to under-perform the Azion. But the stock apears to be less risky and, when comparing its historical volatility, Sun Max Tech is 1.01 times less risky than Azion. The stock trades about -0.01 of its potential returns per unit of risk. The Azion is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,510 in Azion on September 15, 2024 and sell it today you would earn a total of 130.00 from holding Azion or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sun Max Tech vs. Azion
Performance |
| Timeline |
| Sun Max Tech |
| Azion |
Sun Max and Azion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Max and Azion
The main advantage of trading using opposite Sun Max and Azion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Max position performs unexpectedly, Azion 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 Azion will offset losses from the drop in Azion's long position.| Sun Max vs. ASRock Inc | Sun Max vs. Ko Ja Cayman | Sun Max vs. Chenbro Micom Co | Sun Max vs. Leadtek Research |
| Azion vs. AVerMedia Technologies | Azion vs. MediaTek | Azion vs. Pili International Multimedia | Azion vs. Sun Max Tech |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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