Correlation Between Intai Technology and Sun Max

Can any of the company-specific risk be diversified away by investing in both Intai Technology and Sun Max 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 Intai Technology and Sun Max into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intai Technology and Sun Max Tech, you can compare the effects of market volatilities on Intai Technology and Sun Max 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 Intai Technology with a short position of Sun Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intai Technology and Sun Max.

Diversification Opportunities for Intai Technology and Sun Max

0.3

Correlation Coefficient

Intai Technology  Sun Max

Weak diversification

The 3 months correlation between Intai and Sun is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Intai Technology and Sun Max Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Max Tech and Intai 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 Intai Technology are associated (or correlated) with Sun Max. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Max Tech has no effect on the direction of Intai Technology i.e., Intai Technology and Sun Max go up and down completely randomly.

Pair Corralation between Intai Technology and Sun Max

Assuming the 90 days trading horizon Intai Technology is expected to generate 0.29 times more return on investment than Sun Max. However, Intai Technology is 3.48 times less risky than Sun Max. It trades about -0.08 of its potential returns per unit of risk. Sun Max Tech is currently generating about -0.04 per unit of risk. If you would invest  11,450  in Intai Technology on September 22, 2024 and sell it today you would lose (150.00) from holding Intai Technology or give up 1.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Intai Technology  vs.  Sun Max Tech

Intai Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intai Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Intai Technology is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Sun Max Tech

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Max Tech are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Sun Max is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Intai Technology and Sun Max

The main advantage of trading using opposite Intai Technology and Sun Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intai Technology position performs unexpectedly, Sun Max 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 Max will offset losses from the drop in Sun Max's long position.

The idea behind Intai Technology and Sun Max Tech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.