Correlation Between Micro Leasing and Sun Vending
Can any of the company-specific risk be diversified away by investing in both Micro Leasing and Sun Vending 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 Micro Leasing and Sun Vending into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micro Leasing Public and Sun Vending Technology, you can compare the effects of market volatilities on Micro Leasing and Sun Vending 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 Micro Leasing with a short position of Sun Vending. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micro Leasing and Sun Vending.
Diversification Opportunities for Micro Leasing and Sun Vending
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Micro and Sun is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Micro Leasing Public and Sun Vending Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Vending Technology and Micro Leasing 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 Micro Leasing Public are associated (or correlated) with Sun Vending. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Vending Technology has no effect on the direction of Micro Leasing i.e., Micro Leasing and Sun Vending go up and down completely randomly.
Pair Corralation between Micro Leasing and Sun Vending
Assuming the 90 days trading horizon Micro Leasing Public is expected to under-perform the Sun Vending. In addition to that, Micro Leasing is 1.42 times more volatile than Sun Vending Technology. It trades about -0.06 of its total potential returns per unit of risk. Sun Vending Technology is currently generating about -0.04 per unit of volatility. If you would invest 249.00 in Sun Vending Technology on August 28, 2024 and sell it today you would lose (94.00) from holding Sun Vending Technology or give up 37.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Micro Leasing Public vs. Sun Vending Technology
Performance |
| Timeline |
| Micro Leasing Public |
| Sun Vending Technology |
Micro Leasing and Sun Vending Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micro Leasing and Sun Vending
The main advantage of trading using opposite Micro Leasing and Sun Vending positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micro Leasing position performs unexpectedly, Sun Vending 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 Vending will offset losses from the drop in Sun Vending's long position.| Micro Leasing vs. Amanah Leasing Public | Micro Leasing vs. Infraset Public | Micro Leasing vs. JMT Network Services |
| Sun Vending vs. Hana Microelectronics Public | Sun Vending vs. Global Power Synergy | Sun Vending vs. Siam Global House | Sun Vending vs. Gulf Energy Development |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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