Correlation Between Sitronix Technology and Ko Ja
Can any of the company-specific risk be diversified away by investing in both Sitronix Technology and Ko Ja 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 Sitronix Technology and Ko Ja into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sitronix Technology Corp and Ko Ja Cayman, you can compare the effects of market volatilities on Sitronix Technology and Ko Ja 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 Sitronix Technology with a short position of Ko Ja. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitronix Technology and Ko Ja.
Diversification Opportunities for Sitronix Technology and Ko Ja
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sitronix and 5215 is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Sitronix Technology Corp and Ko Ja Cayman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ko Ja Cayman and Sitronix Technology 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 Sitronix Technology Corp are associated (or correlated) with Ko Ja. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ko Ja Cayman has no effect on the direction of Sitronix Technology i.e., Sitronix Technology and Ko Ja go up and down completely randomly.
Pair Corralation between Sitronix Technology and Ko Ja
Assuming the 90 days trading horizon Sitronix Technology Corp is expected to generate 0.93 times more return on investment than Ko Ja. However, Sitronix Technology Corp is 1.08 times less risky than Ko Ja. It trades about 0.02 of its potential returns per unit of risk. Ko Ja Cayman is currently generating about 0.01 per unit of risk. If you would invest 17,950 in Sitronix Technology Corp on August 30, 2024 and sell it today you would earn a total of 2,550 from holding Sitronix Technology Corp or generate 14.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sitronix Technology Corp vs. Ko Ja Cayman
Performance |
| Timeline |
| Sitronix Technology Corp |
| Ko Ja Cayman |
Sitronix Technology and Ko Ja Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sitronix Technology and Ko Ja
The main advantage of trading using opposite Sitronix Technology and Ko Ja positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitronix Technology position performs unexpectedly, Ko Ja 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 Ko Ja will offset losses from the drop in Ko Ja's long position.| Sitronix Technology vs. Novatek Microelectronics Corp | Sitronix Technology vs. FocalTech Systems Co | Sitronix Technology vs. Elan Microelectronics Corp | Sitronix Technology vs. Realtek Semiconductor 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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