Correlation Between Sunfun Info and Namchow Chemical
Can any of the company-specific risk be diversified away by investing in both Sunfun Info and Namchow Chemical 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 Sunfun Info and Namchow Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunfun Info Co and Namchow Chemical Industrial, you can compare the effects of market volatilities on Sunfun Info and Namchow Chemical 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 Sunfun Info with a short position of Namchow Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunfun Info and Namchow Chemical.
Diversification Opportunities for Sunfun Info and Namchow Chemical
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sunfun and Namchow is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sunfun Info Co and Namchow Chemical Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Chemical Ind and Sunfun Info 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 Sunfun Info Co are associated (or correlated) with Namchow Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Chemical Ind has no effect on the direction of Sunfun Info i.e., Sunfun Info and Namchow Chemical go up and down completely randomly.
Pair Corralation between Sunfun Info and Namchow Chemical
Assuming the 90 days trading horizon Sunfun Info Co is expected to generate 121.25 times more return on investment than Namchow Chemical. However, Sunfun Info is 121.25 times more volatile than Namchow Chemical Industrial. It trades about 0.16 of its potential returns per unit of risk. Namchow Chemical Industrial is currently generating about -0.08 per unit of risk. If you would invest 2,395 in Sunfun Info Co on September 24, 2024 and sell it today you would earn a total of 1,300 from holding Sunfun Info Co or generate 54.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sunfun Info Co vs. Namchow Chemical Industrial
Performance |
Timeline |
Sunfun Info |
Namchow Chemical Ind |
Sunfun Info and Namchow Chemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunfun Info and Namchow Chemical
The main advantage of trading using opposite Sunfun Info and Namchow Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunfun Info position performs unexpectedly, Namchow Chemical 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 Namchow Chemical will offset losses from the drop in Namchow Chemical's long position.Sunfun Info vs. Namchow Chemical Industrial | Sunfun Info vs. Double Bond Chemical | Sunfun Info vs. Loop Telecommunication International | Sunfun Info vs. Advanced Wireless Semiconductor |
Namchow Chemical vs. Taisun Enterprise Co | Namchow Chemical vs. De Licacy Industrial | Namchow Chemical vs. Wisher Industrial Co | Namchow Chemical vs. Tainan Enterprises Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Transaction History View history of all your transactions and understand their impact on performance | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |