Correlation Between Intai Technology and Sun Sea

Can any of the company-specific risk be diversified away by investing in both Intai Technology and Sun Sea 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 Sea 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 Sea Construction, you can compare the effects of market volatilities on Intai Technology and Sun Sea 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 Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intai Technology and Sun Sea.

Diversification Opportunities for Intai Technology and Sun Sea

-0.35

Correlation Coefficient

Intai Technology  Sun Sea

Very good diversification

The 3 months correlation between Intai and Sun is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Intai Technology and Sun Sea Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Sea Construction 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 Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Sea Construction has no effect on the direction of Intai Technology i.e., Intai Technology and Sun Sea go up and down completely randomly.

Pair Corralation between Intai Technology and Sun Sea

Assuming the 90 days trading horizon Intai Technology is expected to generate 235.2 times less return on investment than Sun Sea. But when comparing it to its historical volatility, Intai Technology is 2.31 times less risky than Sun Sea. It trades about 0.0 of its potential returns per unit of risk. Sun Sea Construction is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  1,800  in Sun Sea Construction on October 6, 2024 and sell it today you would earn a total of  135.00  from holding Sun Sea Construction or generate 7.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Intai Technology  vs.  Sun Sea Construction

Intai Technology

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intai Technology are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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 Sea Construction

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Sea Construction are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Sun Sea 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 Sea

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

The idea behind Intai Technology and Sun Sea Construction 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.