Correlation Between Sun Max and Dawushan Farm
Can any of the company-specific risk be diversified away by investing in both Sun Max and Dawushan Farm 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 Dawushan Farm 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 Dawushan Farm Tech, you can compare the effects of market volatilities on Sun Max and Dawushan Farm 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 Dawushan Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Max and Dawushan Farm.
Diversification Opportunities for Sun Max and Dawushan Farm
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sun and Dawushan is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sun Max Tech and Dawushan Farm Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawushan Farm Tech 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 Dawushan Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawushan Farm Tech has no effect on the direction of Sun Max i.e., Sun Max and Dawushan Farm go up and down completely randomly.
Pair Corralation between Sun Max and Dawushan Farm
Assuming the 90 days trading horizon Sun Max Tech is expected to generate 1.37 times more return on investment than Dawushan Farm. However, Sun Max is 1.37 times more volatile than Dawushan Farm Tech. It trades about 0.01 of its potential returns per unit of risk. Dawushan Farm Tech is currently generating about -0.05 per unit of risk. If you would invest 5,010 in Sun Max Tech on October 26, 2024 and sell it today you would lose (20.00) from holding Sun Max Tech or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Max Tech vs. Dawushan Farm Tech
Performance |
| Timeline |
| Sun Max Tech |
| Dawushan Farm Tech |
Sun Max and Dawushan Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Max and Dawushan Farm
The main advantage of trading using opposite Sun Max and Dawushan Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Max position performs unexpectedly, Dawushan Farm 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 Dawushan Farm will offset losses from the drop in Dawushan Farm'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 |
| Dawushan Farm vs. Shinkong Insurance Co | Dawushan Farm vs. Yuan High Tech Development | Dawushan Farm vs. Sesoda Corp | Dawushan Farm 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |