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
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chia and AGV is 0.16. 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 generate 1.06 times more return on investment than AGV Products. However, Chia Hsin is 1.06 times more volatile than AGV Products Corp. It trades about 0.11 of its potential returns per unit of risk. AGV Products Corp is currently generating about 0.08 per unit of risk. If you would invest 1,760 in Chia Hsin Cement on September 1, 2024 and sell it today you would earn a total of 35.00 from holding Chia Hsin Cement or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chia Hsin Cement vs. AGV Products Corp
Performance |
| Timeline |
| Chia Hsin Cement |
| AGV Products Corp |
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.| Chia Hsin vs. Basso Industry Corp | Chia Hsin vs. Chung Hsin Electric Machinery | Chia Hsin vs. TYC Brother Industrial | Chia Hsin vs. TECO Electric Machinery |
| AGV Products vs. De Licacy Industrial | AGV Products vs. Wisher Industrial Co | AGV Products vs. Tainan Enterprises Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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