Correlation Between Sun Vending and BPS TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Sun Vending and BPS 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 Sun Vending and BPS TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Vending Technology and BPS TECHNOLOGY PUBLIC, you can compare the effects of market volatilities on Sun Vending and BPS 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 Sun Vending with a short position of BPS TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Vending and BPS TECHNOLOGY.
Diversification Opportunities for Sun Vending and BPS TECHNOLOGY
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sun and BPS is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sun Vending Technology and BPS TECHNOLOGY PUBLIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPS TECHNOLOGY PUBLIC and Sun Vending 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 Sun Vending Technology are associated (or correlated) with BPS TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPS TECHNOLOGY PUBLIC has no effect on the direction of Sun Vending i.e., Sun Vending and BPS TECHNOLOGY go up and down completely randomly.
Pair Corralation between Sun Vending and BPS TECHNOLOGY
Assuming the 90 days trading horizon Sun Vending Technology is expected to generate 0.38 times more return on investment than BPS TECHNOLOGY. However, Sun Vending Technology is 2.63 times less risky than BPS TECHNOLOGY. It trades about -0.48 of its potential returns per unit of risk. BPS TECHNOLOGY PUBLIC is currently generating about -0.19 per unit of risk. If you would invest 178.00 in Sun Vending Technology on September 3, 2024 and sell it today you would lose (25.00) from holding Sun Vending Technology or give up 14.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Vending Technology vs. BPS TECHNOLOGY PUBLIC
Performance |
| Timeline |
| Sun Vending Technology |
| BPS TECHNOLOGY PUBLIC |
Sun Vending and BPS TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Vending and BPS TECHNOLOGY
The main advantage of trading using opposite Sun Vending and BPS TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Vending position performs unexpectedly, BPS 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 BPS TECHNOLOGY will offset losses from the drop in BPS TECHNOLOGY's long position.| Sun Vending vs. Hana Microelectronics Public | Sun Vending vs. Global Power Synergy | Sun Vending vs. Siam Global House | Sun Vending vs. Gulf Energy Development |
| BPS TECHNOLOGY vs. Delta Electronics Public | BPS TECHNOLOGY vs. Delta Electronics Public | BPS TECHNOLOGY vs. Airports of Thailand | BPS TECHNOLOGY vs. Airports of Thailand |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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