Correlation Between Taisun Enterprise and Grape King
Can any of the company-specific risk be diversified away by investing in both Taisun Enterprise and Grape King 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 Taisun Enterprise and Grape King into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taisun Enterprise Co and Grape King Bio, you can compare the effects of market volatilities on Taisun Enterprise and Grape King 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 Taisun Enterprise with a short position of Grape King. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taisun Enterprise and Grape King.
Diversification Opportunities for Taisun Enterprise and Grape King
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Taisun and Grape is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Taisun Enterprise Co and Grape King Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grape King Bio and Taisun Enterprise 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 Taisun Enterprise Co are associated (or correlated) with Grape King. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grape King Bio has no effect on the direction of Taisun Enterprise i.e., Taisun Enterprise and Grape King go up and down completely randomly.
Pair Corralation between Taisun Enterprise and Grape King
Assuming the 90 days trading horizon Taisun Enterprise Co is expected to generate 0.8 times more return on investment than Grape King. However, Taisun Enterprise Co is 1.25 times less risky than Grape King. It trades about -0.14 of its potential returns per unit of risk. Grape King Bio is currently generating about -0.13 per unit of risk. If you would invest 1,995 in Taisun Enterprise Co on October 26, 2024 and sell it today you would lose (45.00) from holding Taisun Enterprise Co or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taisun Enterprise Co vs. Grape King Bio
Performance |
| Timeline |
| Taisun Enterprise |
| Grape King Bio |
Taisun Enterprise and Grape King Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taisun Enterprise and Grape King
The main advantage of trading using opposite Taisun Enterprise and Grape King positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taisun Enterprise position performs unexpectedly, Grape King 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 Grape King will offset losses from the drop in Grape King's long position.| Taisun Enterprise vs. AGV Products Corp | Taisun Enterprise vs. Wei Chuan Foods | Taisun Enterprise vs. Chia Hsin Cement | Taisun Enterprise vs. Grand Pacific Petrochemical |
| Grape King vs. Uni President Enterprises Corp | Grape King vs. Taisun Enterprise Co | Grape King vs. AGV Products Corp | Grape King vs. Great Wall Enterprise |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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