Correlation Between Chia Hsin and AGV Products
Can any of the company-specific risk be diversified away by investing in both Chia Hsin and AGV Products 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 Chia Hsin and AGV Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chia Hsin Cement and AGV Products Corp, you can compare the effects of market volatilities on Chia Hsin and AGV Products 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 Chia Hsin with a short position of AGV Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia Hsin and AGV Products.
Diversification Opportunities for Chia Hsin and AGV Products
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chia and AGV is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Chia Hsin Cement and AGV Products Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGV Products Corp and Chia Hsin 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 Chia Hsin Cement are associated (or correlated) with AGV Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGV Products Corp has no effect on the direction of Chia Hsin i.e., Chia Hsin and AGV Products go up and down completely randomly.
Pair Corralation between Chia Hsin and AGV Products
Assuming the 90 days trading horizon Chia Hsin Cement is expected to under-perform the AGV Products. In addition to that, Chia Hsin is 1.02 times more volatile than AGV Products Corp. It trades about -0.01 of its total potential returns per unit of risk. AGV Products Corp is currently generating about 0.0 per unit of volatility. If you would invest 1,190 in AGV Products Corp on November 5, 2024 and sell it today you would lose (25.00) from holding AGV Products Corp or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chia Hsin Cement vs. AGV Products Corp
Performance |
| Timeline |
| Chia Hsin Cement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AGV Products Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Chia Hsin and AGV Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chia Hsin and AGV Products
The main advantage of trading using opposite Chia Hsin and AGV Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia Hsin position performs unexpectedly, AGV Products 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 AGV Products will offset losses from the drop in AGV Products' long position.The idea behind Chia Hsin Cement and AGV Products Corp 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.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |