Correlation Between Sun Vending and ASIA Capital
Can any of the company-specific risk be diversified away by investing in both Sun Vending and ASIA Capital 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 ASIA Capital 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 ASIA Capital Group, you can compare the effects of market volatilities on Sun Vending and ASIA Capital 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 ASIA Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Vending and ASIA Capital.
Diversification Opportunities for Sun Vending and ASIA Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sun and ASIA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Vending Technology and ASIA Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASIA Capital Group 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 ASIA Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASIA Capital Group has no effect on the direction of Sun Vending i.e., Sun Vending and ASIA Capital go up and down completely randomly.
Pair Corralation between Sun Vending and ASIA Capital
Assuming the 90 days trading horizon Sun Vending Technology is expected to generate 0.13 times more return on investment than ASIA Capital. However, Sun Vending Technology is 7.68 times less risky than ASIA Capital. It trades about -0.07 of its potential returns per unit of risk. ASIA Capital Group is currently generating about -0.13 per unit of risk. If you would invest 151.00 in Sun Vending Technology on December 2, 2024 and sell it today you would lose (12.00) from holding Sun Vending Technology or give up 7.95% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sun Vending Technology vs. ASIA Capital Group
Performance |
Timeline |
Sun Vending Technology |
ASIA Capital Group |
Sun Vending and ASIA Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sun Vending and ASIA Capital
The main advantage of trading using opposite Sun Vending and ASIA Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Vending position performs unexpectedly, ASIA Capital 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 ASIA Capital will offset losses from the drop in ASIA Capital'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 |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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