Correlation Between Sitronix Technology and C Media
Can any of the company-specific risk be diversified away by investing in both Sitronix Technology and C Media 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 C Media 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 C Media Electronics, you can compare the effects of market volatilities on Sitronix Technology and C Media 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 C Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitronix Technology and C Media.
Diversification Opportunities for Sitronix Technology and C Media
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sitronix and 6237 is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sitronix Technology Corp and C Media Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C Media Electronics 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 C Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C Media Electronics has no effect on the direction of Sitronix Technology i.e., Sitronix Technology and C Media go up and down completely randomly.
Pair Corralation between Sitronix Technology and C Media
Assuming the 90 days trading horizon Sitronix Technology Corp is expected to under-perform the C Media. But the stock apears to be less risky and, when comparing its historical volatility, Sitronix Technology Corp is 1.58 times less risky than C Media. The stock trades about -0.07 of its potential returns per unit of risk. The C Media Electronics is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6,050 in C Media Electronics on September 4, 2024 and sell it today you would lose (1,145) from holding C Media Electronics or give up 18.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sitronix Technology Corp vs. C Media Electronics
Performance |
| Timeline |
| Sitronix Technology Corp |
| C Media Electronics |
Sitronix Technology and C Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sitronix Technology and C Media
The main advantage of trading using opposite Sitronix Technology and C Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitronix Technology position performs unexpectedly, C Media 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 C Media will offset losses from the drop in C Media'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 |
| C Media vs. Chicony Power Technology | C Media vs. China Times Publishing | C Media vs. Cleanaway Co | C Media vs. Level Biotechnology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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