Correlation Between BenQ Materials and Sitronix Technology
Can any of the company-specific risk be diversified away by investing in both BenQ Materials and Sitronix Technology 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 BenQ Materials and Sitronix Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BenQ Materials Corp and Sitronix Technology Corp, you can compare the effects of market volatilities on BenQ Materials and Sitronix Technology 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 BenQ Materials with a short position of Sitronix Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BenQ Materials and Sitronix Technology.
Diversification Opportunities for BenQ Materials and Sitronix Technology
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BenQ and Sitronix is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding BenQ Materials Corp and Sitronix Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitronix Technology Corp and BenQ Materials 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 BenQ Materials Corp are associated (or correlated) with Sitronix Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitronix Technology Corp has no effect on the direction of BenQ Materials i.e., BenQ Materials and Sitronix Technology go up and down completely randomly.
Pair Corralation between BenQ Materials and Sitronix Technology
Assuming the 90 days trading horizon BenQ Materials Corp is expected to generate 0.99 times more return on investment than Sitronix Technology. However, BenQ Materials Corp is 1.01 times less risky than Sitronix Technology. It trades about 0.0 of its potential returns per unit of risk. Sitronix Technology Corp is currently generating about -0.1 per unit of risk. If you would invest 3,300 in BenQ Materials Corp on September 3, 2024 and sell it today you would lose (45.00) from holding BenQ Materials Corp or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BenQ Materials Corp vs. Sitronix Technology Corp
Performance |
| Timeline |
| BenQ Materials Corp |
| Sitronix Technology Corp |
BenQ Materials and Sitronix Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BenQ Materials and Sitronix Technology
The main advantage of trading using opposite BenQ Materials and Sitronix Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BenQ Materials position performs unexpectedly, Sitronix Technology 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 Sitronix Technology will offset losses from the drop in Sitronix Technology's long position.| BenQ Materials vs. Taiwan Semiconductor Manufacturing | BenQ Materials vs. Yang Ming Marine | BenQ Materials vs. ASE Industrial Holding | BenQ Materials vs. AU Optronics |
| Sitronix Technology vs. Taiwan Semiconductor Manufacturing | Sitronix Technology vs. Yang Ming Marine | Sitronix Technology vs. ASE Industrial Holding | Sitronix Technology 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |