Correlation Between SUN ART and TRADELINK ELECTRON

Can any of the company-specific risk be diversified away by investing in both SUN ART and TRADELINK ELECTRON 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 ART and TRADELINK ELECTRON into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SUN ART RETAIL and TRADELINK ELECTRON, you can compare the effects of market volatilities on SUN ART and TRADELINK ELECTRON 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 ART with a short position of TRADELINK ELECTRON. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUN ART and TRADELINK ELECTRON.

Diversification Opportunities for SUN ART and TRADELINK ELECTRON

0.42

Correlation Coefficient

SUN ART  TRADELINK ELECTRON

Very weak diversification

The 3 months correlation between SUN and TRADELINK is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SUN ART RETAIL and TRADELINK ELECTRON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRADELINK ELECTRON and SUN ART 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 ART RETAIL are associated (or correlated) with TRADELINK ELECTRON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRADELINK ELECTRON has no effect on the direction of SUN ART i.e., SUN ART and TRADELINK ELECTRON go up and down completely randomly.

Pair Corralation between SUN ART and TRADELINK ELECTRON

Assuming the 90 days trading horizon SUN ART is expected to generate 5.82 times less return on investment than TRADELINK ELECTRON. But when comparing it to its historical volatility, SUN ART RETAIL is 4.64 times less risky than TRADELINK ELECTRON. It trades about 0.05 of its potential returns per unit of risk. TRADELINK ELECTRON is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  10.00  in TRADELINK ELECTRON on May 5, 2025 and sell it today you would earn a total of  1.00  from holding TRADELINK ELECTRON or generate 10.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.48%
Values	Daily Returns

SUN ART RETAIL  vs.  TRADELINK ELECTRON

SUN ART RETAIL

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SUN ART RETAIL are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile forward indicators, SUN ART exhibited solid returns over the last few months and may actually be approaching a breakup point.

TRADELINK ELECTRON

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TRADELINK ELECTRON are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, TRADELINK ELECTRON exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SUN ART and TRADELINK ELECTRON

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

The idea behind SUN ART RETAIL and TRADELINK ELECTRON 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.