Correlation Between Sitronix Technology and Global Mixed
Can any of the company-specific risk be diversified away by investing in both Sitronix Technology and Global Mixed 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 Global Mixed 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 Global Mixed Mode Technology, you can compare the effects of market volatilities on Sitronix Technology and Global Mixed 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 Global Mixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitronix Technology and Global Mixed.
Diversification Opportunities for Sitronix Technology and Global Mixed
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sitronix and Global is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sitronix Technology Corp and Global Mixed Mode Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Mixed Mode 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 Global Mixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Mixed Mode has no effect on the direction of Sitronix Technology i.e., Sitronix Technology and Global Mixed go up and down completely randomly.
Pair Corralation between Sitronix Technology and Global Mixed
Assuming the 90 days trading horizon Sitronix Technology Corp is expected to under-perform the Global Mixed. But the stock apears to be less risky and, when comparing its historical volatility, Sitronix Technology Corp is 1.08 times less risky than Global Mixed. The stock trades about -0.07 of its potential returns per unit of risk. The Global Mixed Mode Technology is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 25,200 in Global Mixed Mode Technology on October 25, 2024 and sell it today you would lose (2,450) from holding Global Mixed Mode Technology or give up 9.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Sitronix Technology Corp vs. Global Mixed Mode Technology
Performance |
| Timeline |
| Sitronix Technology Corp |
| Global Mixed Mode |
Sitronix Technology and Global Mixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sitronix Technology and Global Mixed
The main advantage of trading using opposite Sitronix Technology and Global Mixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitronix Technology position performs unexpectedly, Global Mixed 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 Global Mixed will offset losses from the drop in Global Mixed's long position.| Sitronix Technology vs. Unimicron Technology Corp | Sitronix Technology vs. Kinsus Interconnect Technology | Sitronix Technology vs. Novatek Microelectronics Corp | Sitronix Technology vs. Delta Electronics |
| Global Mixed vs. Sitronix Technology Corp | Global Mixed vs. Novatek Microelectronics Corp | Global Mixed vs. Global Unichip Corp | Global Mixed vs. Holtek Semiconductor |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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