Te Chang Correlations

5511 Stock

TWD 61.70 0.40 0.64%

The current 90-days correlation between Te Chang Construction and Shieh Yih Machinery is 0.2 (i.e., Modest diversification). The correlation of Te Chang is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Te Chang Correlation With Market

Good diversification

The correlation between Te Chang Construction and DJI is -0.18 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Te Chang Construction and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Te Chang could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Te Chang when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Te Chang - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Te Chang Construction to buy it.

Moving against 5511 Stock

0.62	9933	CTCI Corp	Pair Corr
0.55	2327	Yageo Corp	Pair Corr
0.54	5274	Aspeed Technology	Pair Corr
0.37	0051	YuantaP shares Taiwan	Pair Corr
0.36	3034	Novatek Microelectronics	Pair Corr

Related Correlations Analysis

	4533	2505	2530	5514	2542	1539	5516	1540	2545
4533		0.19	0.26	0.53	-0.22	0.72	-0.7	0.91	-0.18	4533
2505	0.19		0.54	-0.06	0.53	-0.05	0.13	0.23	0.53	2505
2530	0.26	0.54		0.31	0.52	0.33	-0.42	0.38	0.8	2530
5514	0.53	-0.06	0.31		-0.34	0.88	-0.7	0.72	-0.03	5514
2542	-0.22	0.53	0.52	-0.34		-0.35	0.18	-0.17	0.74	2542
1539	0.72	-0.05	0.33	0.88	-0.35		-0.85	0.85	-0.1	1539
5516	-0.7	0.13	-0.42	-0.7	0.18	-0.85		-0.78	-0.06	5516
1540	0.91	0.23	0.38	0.72	-0.17	0.85	-0.78		-0.07	1540
2545	-0.18	0.53	0.8	-0.03	0.74	-0.1	-0.06	-0.07		2545
	4533	2505	2530	5514	2542	1539	5516	1540	2545

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

1540	+ 0.91	4533
1539	+ 0.88	5514
1540	+ 0.85	1539
2545	+ 0.8	2530
2545	+ 0.74	2542
1539	+ 0.72	4533

High negative correlations

5516	- 0.85	1539
1540	- 0.78	5516
5516	- 0.7	5514
5516	- 0.7	4533
5516	- 0.42	2530
1539	- 0.35	2542

Risk-Adjusted Indicators

There is a big difference between 5511 Stock performing well and Te Chang Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Te Chang's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
4533	1.71	(0.39)	0.00	2.38	0.00	0.00	2.99	(3.92)	13.37
2505	1.14	(0.09)	0.00	0.95	0.00	0.00	1.87	(3.03)	8.67
2530	1.01	0.03	(0.03)	(0.25)	1.30	(1.27)	2.73	(2.54)	9.74
5514	0.75	(0.15)	0.00	(0.68)	0.00	0.00	1.48	(2.09)	5.35
2542	1.26	0.03	(0.03)	(0.11)	1.52	(1.46)	3.45	(2.28)	9.06
1539	1.41	(0.44)	0.00	(5.61)	0.00	0.00	2.40	(3.70)	8.29
5516	1.22	0.15	0.04	92.43	1.54	(1.54)	3.17	(2.92)	8.96
1540	1.78	(0.52)	0.00	1.61	0.00	0.00	4.25	(3.54)	14.07
2545	1.66	0.09	0.00	(0.38)	2.23	(1.91)	4.78	(3.42)	17.47

Te Chang Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with Te Chang stock to make a market-neutral strategy. Peer analysis of Te Chang could also be used in its relative valuation, which is a method of valuing Te Chang by comparing valuation metrics with similar companies.

Shieh Yih Machinery Kuo Yang Construction Delpha Construction Co Sunfon Construction Co Highwealth Construction Corp Chiu Ting Machinery Sun Sea Construction Roundtop Machinery Industries Huang Hsiang Construction American Airlines Group Alcoa Corp Apple Inc Best Buy Co Citigroup SentinelOne

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