Correlation Between Chenbro Micom and Sun Max
Can any of the company-specific risk be diversified away by investing in both Chenbro Micom and Sun Max 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 Chenbro Micom and Sun Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chenbro Micom Co and Sun Max Tech, you can compare the effects of market volatilities on Chenbro Micom and Sun Max 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 Chenbro Micom with a short position of Sun Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenbro Micom and Sun Max.
Diversification Opportunities for Chenbro Micom and Sun Max
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chenbro and Sun is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Chenbro Micom Co and Sun Max Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Max Tech and Chenbro Micom 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 Chenbro Micom Co are associated (or correlated) with Sun Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Max Tech has no effect on the direction of Chenbro Micom i.e., Chenbro Micom and Sun Max go up and down completely randomly.
Pair Corralation between Chenbro Micom and Sun Max
Assuming the 90 days trading horizon Chenbro Micom Co is expected to generate 1.41 times more return on investment than Sun Max. However, Chenbro Micom is 1.41 times more volatile than Sun Max Tech. It trades about 0.02 of its potential returns per unit of risk. Sun Max Tech is currently generating about -0.03 per unit of risk. If you would invest 28,450 in Chenbro Micom Co on September 1, 2024 and sell it today you would earn a total of 450.00 from holding Chenbro Micom Co or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Chenbro Micom Co vs. Sun Max Tech
Performance |
| Timeline |
| Chenbro Micom |
| Sun Max Tech |
Chenbro Micom and Sun Max Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenbro Micom and Sun Max
The main advantage of trading using opposite Chenbro Micom and Sun Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenbro Micom position performs unexpectedly, Sun Max 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 Sun Max will offset losses from the drop in Sun Max's long position.| Chenbro Micom vs. Getac Technology Corp | Chenbro Micom vs. ASRock Inc | Chenbro Micom vs. Elite Material Co | Chenbro Micom vs. Topco Scientific Co |
| Sun Max vs. Quanta Computer | Sun Max vs. Wiwynn Corp | Sun Max vs. Getac Technology Corp | Sun Max vs. InnoDisk |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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