Correlation Between Chenbro Micom and Sun Max
Can any of the company-specific risk be diversified away by investing in both Chenbro Micom 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 Chenbro Micom and Sun Max into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chenbro Micom Co and Sun Max Tech, you can compare the effects of market volatilities on Chenbro Micom 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 Chenbro Micom with a short position of Sun Max. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenbro Micom and Sun Max.
Diversification Opportunities for Chenbro Micom and Sun Max
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chenbro and Sun is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chenbro Micom Co 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 Chenbro Micom 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 Chenbro Micom Co 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 Chenbro Micom i.e., Chenbro Micom and Sun Max go up and down completely randomly.
Pair Corralation between Chenbro Micom and Sun Max
Assuming the 90 days trading horizon Chenbro Micom Co is expected to generate 1.32 times more return on investment than Sun Max. However, Chenbro Micom is 1.32 times more volatile than Sun Max Tech. It trades about 0.11 of its potential returns per unit of risk. Sun Max Tech is currently generating about 0.11 per unit of risk. If you would invest 27,150 in Chenbro Micom Co on September 8, 2024 and sell it today you would earn a total of 4,000 from holding Chenbro Micom Co or generate 14.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Chenbro Micom Co vs. Sun Max Tech
Performance |
Timeline |
Chenbro Micom |
Sun Max Tech |
Chenbro Micom and Sun Max Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chenbro Micom and Sun Max
The main advantage of trading using opposite Chenbro Micom and Sun Max positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenbro Micom 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.Chenbro Micom vs. Getac Technology Corp | Chenbro Micom vs. ASRock Inc | Chenbro Micom vs. Elite Material Co | Chenbro Micom vs. Topco Scientific Co |
Sun Max vs. ASRock Inc | Sun Max vs. Micro Star International Co | Sun Max vs. Gigabyte Technology Co | Sun Max vs. FocalTech Systems 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |