Correlation Between Sun Max and Neo Neon
Can any of the company-specific risk be diversified away by investing in both Sun Max and Neo Neon 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 Neo Neon 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 Neo Neon Holdings Limited, you can compare the effects of market volatilities on Sun Max and Neo Neon 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 Neo Neon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Max and Neo Neon.
Diversification Opportunities for Sun Max and Neo Neon
Pay attention - limited upside
The 3 months correlation between Sun and Neo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Max Tech and Neo Neon Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neo Neon Holdings 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 Neo Neon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neo Neon Holdings has no effect on the direction of Sun Max i.e., Sun Max and Neo Neon go up and down completely randomly.
Pair Corralation between Sun Max and Neo Neon
Assuming the 90 days trading horizon Sun Max Tech is expected to generate 2.23 times more return on investment than Neo Neon. However, Sun Max is 2.23 times more volatile than Neo Neon Holdings Limited. It trades about 0.06 of its potential returns per unit of risk. Neo Neon Holdings Limited is currently generating about 0.11 per unit of risk. If you would invest 5,000 in Sun Max Tech on September 13, 2024 and sell it today you would earn a total of 140.00 from holding Sun Max Tech or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Max Tech vs. Neo Neon Holdings Limited
Performance |
| Timeline |
| Sun Max Tech |
| Neo Neon Holdings |
Sun Max and Neo Neon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Max and Neo Neon
The main advantage of trading using opposite Sun Max and Neo Neon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Max position performs unexpectedly, Neo Neon 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 Neo Neon will offset losses from the drop in Neo Neon'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 |
| Neo Neon vs. Level Biotechnology | Neo Neon vs. Sun Max Tech | Neo Neon vs. Alchip Technologies | Neo Neon vs. Apex Biotechnology 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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