Correlation Between Sitronix Technology and BenQ Materials
Can any of the company-specific risk be diversified away by investing in both Sitronix Technology and BenQ Materials 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 BenQ Materials 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 BenQ Materials Corp, you can compare the effects of market volatilities on Sitronix Technology and BenQ Materials 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 BenQ Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sitronix Technology and BenQ Materials.
Diversification Opportunities for Sitronix Technology and BenQ Materials
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sitronix and BenQ is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sitronix Technology Corp and BenQ Materials Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BenQ Materials Corp 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 BenQ Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BenQ Materials Corp has no effect on the direction of Sitronix Technology i.e., Sitronix Technology and BenQ Materials go up and down completely randomly.
Pair Corralation between Sitronix Technology and BenQ Materials
Assuming the 90 days trading horizon Sitronix Technology Corp is expected to generate 1.12 times more return on investment than BenQ Materials. However, Sitronix Technology is 1.12 times more volatile than BenQ Materials Corp. It trades about 0.02 of its potential returns per unit of risk. BenQ Materials Corp is currently generating about 0.01 per unit of risk. If you would invest 18,700 in Sitronix Technology Corp on September 3, 2024 and sell it today you would earn a total of 1,950 from holding Sitronix Technology Corp or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sitronix Technology Corp vs. BenQ Materials Corp
Performance |
| Timeline |
| Sitronix Technology Corp |
| BenQ Materials Corp |
Sitronix Technology and BenQ Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sitronix Technology and BenQ Materials
The main advantage of trading using opposite Sitronix Technology and BenQ Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sitronix Technology position performs unexpectedly, BenQ Materials 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 BenQ Materials will offset losses from the drop in BenQ Materials' long position.| Sitronix Technology vs. Taiwan Semiconductor Manufacturing | Sitronix Technology vs. Yang Ming Marine | Sitronix Technology vs. ASE Industrial Holding | Sitronix Technology vs. AU Optronics |
| BenQ Materials vs. Taiwan Semiconductor Manufacturing | BenQ Materials vs. Yang Ming Marine | BenQ Materials vs. ASE Industrial Holding | BenQ Materials vs. AU Optronics |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |