Correlation Between Sun Vending and Halcyon Technology
Can any of the company-specific risk be diversified away by investing in both Sun Vending and Halcyon 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 Halcyon 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 Halcyon Technology Public, you can compare the effects of market volatilities on Sun Vending and Halcyon 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 Halcyon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Vending and Halcyon Technology.
Diversification Opportunities for Sun Vending and Halcyon Technology
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sun and Halcyon is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sun Vending Technology and Halcyon Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halcyon 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 Halcyon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halcyon Technology Public has no effect on the direction of Sun Vending i.e., Sun Vending and Halcyon Technology go up and down completely randomly.
Pair Corralation between Sun Vending and Halcyon Technology
Assuming the 90 days trading horizon Sun Vending Technology is expected to under-perform the Halcyon Technology. But the stock apears to be less risky and, when comparing its historical volatility, Sun Vending Technology is 1.12 times less risky than Halcyon Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Halcyon Technology Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 238.00 in Halcyon Technology Public on August 28, 2024 and sell it today you would earn a total of 182.00 from holding Halcyon Technology Public or generate 76.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Vending Technology vs. Halcyon Technology Public
Performance |
| Timeline |
| Sun Vending Technology |
| Halcyon Technology Public |
Sun Vending and Halcyon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Vending and Halcyon Technology
The main advantage of trading using opposite Sun Vending and Halcyon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Vending position performs unexpectedly, Halcyon 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 Halcyon Technology will offset losses from the drop in Halcyon 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 |
| Halcyon Technology vs. Tata Steel Public | Halcyon Technology vs. Thaifoods Group Public | Halcyon Technology vs. TMT Steel Public | Halcyon Technology vs. The Erawan Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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