Correlation Between SunCar Technology and DIeteren Group
Can any of the company-specific risk be diversified away by investing in both SunCar Technology and DIeteren Group 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 SunCar Technology and DIeteren Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunCar Technology Group and DIeteren Group SA, you can compare the effects of market volatilities on SunCar Technology and DIeteren Group 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 SunCar Technology with a short position of DIeteren Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunCar Technology and DIeteren Group.
Diversification Opportunities for SunCar Technology and DIeteren Group
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SunCar and DIeteren is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding SunCar Technology Group and DIeteren Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIeteren Group SA and SunCar 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 SunCar Technology Group are associated (or correlated) with DIeteren Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIeteren Group SA has no effect on the direction of SunCar Technology i.e., SunCar Technology and DIeteren Group go up and down completely randomly.
Pair Corralation between SunCar Technology and DIeteren Group
Considering the 90-day investment horizon SunCar Technology is expected to generate 1.04 times less return on investment than DIeteren Group. In addition to that, SunCar Technology is 2.76 times more volatile than DIeteren Group SA. It trades about 0.02 of its total potential returns per unit of risk. DIeteren Group SA is currently generating about 0.06 per unit of volatility. If you would invest 17,700 in DIeteren Group SA on August 31, 2024 and sell it today you would earn a total of 3,700 from holding DIeteren Group SA or generate 20.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 46.52% |
| Values | Daily Returns |
SunCar Technology Group vs. DIeteren Group SA
Performance |
| Timeline |
| SunCar Technology |
| DIeteren Group SA |
SunCar Technology and DIeteren Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunCar Technology and DIeteren Group
The main advantage of trading using opposite SunCar Technology and DIeteren Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunCar Technology position performs unexpectedly, DIeteren Group 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 DIeteren Group will offset losses from the drop in DIeteren Group's long position.| SunCar Technology vs. Ultrapar Participacoes SA | SunCar Technology vs. Companhia Siderurgica Nacional | SunCar Technology vs. Dawson Geophysical | SunCar Technology vs. Aquagold International |
| DIeteren Group vs. Copart Inc | DIeteren Group vs. Zhongsheng Group Holdings | DIeteren Group vs. Zhongsheng Group Holdings | DIeteren Group vs. CarMax Inc |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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