Lihtai Construction Correlations

5520 Stock

TWD 82.30 0.00 0.00%

The current 90-days correlation between Lihtai Construction and Shieh Yih Machinery is 0.1 (i.e., Average diversification). The correlation of Lihtai Construction 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.

Lihtai Construction Correlation With Market

Modest diversification

The correlation between Lihtai Construction Enterprise and DJI is 0.22 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Lihtai Construction Enterprise and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Lihtai Construction could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lihtai Construction 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 Lihtai Construction - 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 Lihtai Construction Enterprise to buy it.

Moving together with Lihtai Stock

0.61	2882B	Cathay Financial Holding	Pair Corr
0.62	2891	CTBC Financial Holding	Pair Corr

Moving against Lihtai Stock

0.58	1102	Asia Cement Corp	Pair Corr
0.49	2317	Hon Hai Precision	Pair Corr
0.37	2504	Goldsun Building Mat	Pair Corr

Related Correlations Analysis

	4533	2505	2530	5514	2542	1539	5516	1540	2545
4533		0.34	0.4	0.26	0.03	0.56	-0.58	0.87	0.1	4533
2505	0.34		0.54	0.07	0.52	0.09	0.03	0.48	0.52	2505
2530	0.4	0.54		0.53	0.53	0.6	-0.6	0.61	0.86	2530
5514	0.26	0.07	0.53		-0.08	0.79	-0.55	0.51	0.4	5514
2542	0.03	0.52	0.53	-0.08		-0.06	-0.1	0.17	0.68	2542
1539	0.56	0.09	0.6	0.79	-0.06		-0.78	0.73	0.37	1539
5516	-0.58	0.03	-0.6	-0.55	-0.1	-0.78		-0.67	-0.43	5516
1540	0.87	0.48	0.61	0.51	0.17	0.73	-0.67		0.35	1540
2545	0.1	0.52	0.86	0.4	0.68	0.37	-0.43	0.35		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	+ 0.87	4533
2545	+ 0.86	2530
1539	+ 0.79	5514
1540	+ 0.73	1539
2545	+ 0.68	2542
1540	+ 0.61	2530

High negative correlations

5516	- 0.78	1539
1540	- 0.67	5516
5516	- 0.6	2530
5516	- 0.58	4533
5516	- 0.55	5514
2545	- 0.43	5516

Risk-Adjusted Indicators

There is a big difference between Lihtai Stock performing well and Lihtai Construction 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 Lihtai Construction'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	1.75	(0.27)	0.00	3.86	0.00	0.00	3.01	(4.61)	13.37
2505	1.06	(0.05)	0.00	(0.80)	0.00	0.00	1.87	(3.80)	8.67
2530	1.00	(0.02)	0.00	(0.10)	0.00	0.00	2.73	(2.62)	9.74
5514	0.74	(0.07)	0.00	0.70	0.00	0.00	1.75	(2.26)	5.35
2542	1.24	0.08	0.01	1.82	1.47	(1.47)	3.50	(2.28)	9.06
1539	1.38	(0.41)	0.00	(1.53)	0.00	0.00	2.40	(3.70)	8.18
5516	1.28	0.15	0.04	59.28	1.64	(1.60)	3.76	(3.08)	8.96
1540	1.89	(0.38)	0.00	1.67	0.00	0.00	4.77	(3.61)	14.07
2545	1.66	0.08	0.01	1.41	2.42	(1.75)	4.78	(3.53)	17.47

Lihtai Construction 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 Lihtai Construction stock to make a market-neutral strategy. Peer analysis of Lihtai Construction could also be used in its relative valuation, which is a method of valuing Lihtai Construction 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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