Correlation Between Sun Vending and Micro Leasing
Can any of the company-specific risk be diversified away by investing in both Sun Vending and Micro Leasing 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 Micro Leasing 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 Micro Leasing Public, you can compare the effects of market volatilities on Sun Vending and Micro Leasing 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 Micro Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Vending and Micro Leasing.
Diversification Opportunities for Sun Vending and Micro Leasing
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sun and Micro is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sun Vending Technology and Micro Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Leasing 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 Micro Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Leasing Public has no effect on the direction of Sun Vending i.e., Sun Vending and Micro Leasing go up and down completely randomly.
Pair Corralation between Sun Vending and Micro Leasing
Assuming the 90 days trading horizon Sun Vending Technology is expected to generate 0.57 times more return on investment than Micro Leasing. However, Sun Vending Technology is 1.74 times less risky than Micro Leasing. It trades about -0.36 of its potential returns per unit of risk. Micro Leasing Public is currently generating about -0.39 per unit of risk. If you would invest 178.00 in Sun Vending Technology on August 28, 2024 and sell it today you would lose (23.00) from holding Sun Vending Technology or give up 12.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sun Vending Technology vs. Micro Leasing Public
Performance |
| Timeline |
| Sun Vending Technology |
| Micro Leasing Public |
Sun Vending and Micro Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Vending and Micro Leasing
The main advantage of trading using opposite Sun Vending and Micro Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Vending position performs unexpectedly, Micro Leasing 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 Micro Leasing will offset losses from the drop in Micro Leasing'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 |
| Micro Leasing vs. Amanah Leasing Public | Micro Leasing vs. Infraset Public | Micro Leasing vs. JMT Network Services |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |