Correlation Between Great Computer and Sunfar Computer
Can any of the company-specific risk be diversified away by investing in both Great Computer and Sunfar Computer 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 Great Computer and Sunfar Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Computer and Sunfar Computer Co, you can compare the effects of market volatilities on Great Computer and Sunfar Computer 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 Great Computer with a short position of Sunfar Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Computer and Sunfar Computer.
Diversification Opportunities for Great Computer and Sunfar Computer
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Great and Sunfar is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Great Computer and Sunfar Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunfar Computer and Great Computer 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 Great Computer are associated (or correlated) with Sunfar Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunfar Computer has no effect on the direction of Great Computer i.e., Great Computer and Sunfar Computer go up and down completely randomly.
Pair Corralation between Great Computer and Sunfar Computer
Assuming the 90 days trading horizon Great Computer is expected to generate 12.97 times more return on investment than Sunfar Computer. However, Great Computer is 12.97 times more volatile than Sunfar Computer Co. It trades about 0.31 of its potential returns per unit of risk. Sunfar Computer Co is currently generating about 0.0 per unit of risk. If you would invest 1,590 in Great Computer on August 28, 2024 and sell it today you would earn a total of 615.00 from holding Great Computer or generate 38.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Computer vs. Sunfar Computer Co
Performance |
| Timeline |
| Great Computer |
| Sunfar Computer |
Great Computer and Sunfar Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Computer and Sunfar Computer
The main advantage of trading using opposite Great Computer and Sunfar Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Computer position performs unexpectedly, Sunfar Computer 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 Sunfar Computer will offset losses from the drop in Sunfar Computer's long position.| Great Computer vs. Airtac International Group | Great Computer vs. TECO Electric Machinery | Great Computer vs. Chung Hsin Electric Machinery | Great Computer vs. King Slide Works |
| Sunfar Computer vs. Space Shuttle Hi Tech | Sunfar Computer vs. Leatec Fine Ceramics | Sunfar Computer vs. Information Technology Total | Sunfar Computer vs. Kinko Optical Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |