Correlation Between Sun Max and Chicony Power
Can any of the company-specific risk be diversified away by investing in both Sun Max and Chicony Power 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 Chicony Power 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 Chicony Power Technology, you can compare the effects of market volatilities on Sun Max and Chicony Power 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 Chicony Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Max and Chicony Power.
Diversification Opportunities for Sun Max and Chicony Power
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sun and Chicony is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sun Max Tech and Chicony Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicony Power Technology 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 Chicony Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicony Power Technology has no effect on the direction of Sun Max i.e., Sun Max and Chicony Power go up and down completely randomly.
Pair Corralation between Sun Max and Chicony Power
Assuming the 90 days trading horizon Sun Max Tech is expected to generate 0.94 times more return on investment than Chicony Power. However, Sun Max Tech is 1.06 times less risky than Chicony Power. It trades about -0.02 of its potential returns per unit of risk. Chicony Power Technology is currently generating about -0.05 per unit of risk. If you would invest 5,951 in Sun Max Tech on August 29, 2024 and sell it today you would lose (701.00) from holding Sun Max Tech or give up 11.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Max Tech vs. Chicony Power Technology
Performance |
| Timeline |
| Sun Max Tech |
| Chicony Power Technology |
Sun Max and Chicony Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Max and Chicony Power
The main advantage of trading using opposite Sun Max and Chicony Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Max position performs unexpectedly, Chicony Power 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 Chicony Power will offset losses from the drop in Chicony Power'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 |
| Chicony Power vs. Merry Electronics Co | Chicony Power vs. E Lead Electronic Co | Chicony Power vs. Heran Co | Chicony Power vs. Zeng Hsing Industrial |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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