Correlation Between Tung Ho and Chaintech Technology
Can any of the company-specific risk be diversified away by investing in both Tung Ho and Chaintech Technology 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 Tung Ho and Chaintech Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tung Ho Textile and Chaintech Technology Corp, you can compare the effects of market volatilities on Tung Ho and Chaintech Technology 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 Tung Ho with a short position of Chaintech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tung Ho and Chaintech Technology.
Diversification Opportunities for Tung Ho and Chaintech Technology
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tung and Chaintech is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Tung Ho Textile and Chaintech Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chaintech Technology Corp and Tung Ho 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 Tung Ho Textile are associated (or correlated) with Chaintech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chaintech Technology Corp has no effect on the direction of Tung Ho i.e., Tung Ho and Chaintech Technology go up and down completely randomly.
Pair Corralation between Tung Ho and Chaintech Technology
Assuming the 90 days trading horizon Tung Ho Textile is expected to under-perform the Chaintech Technology. But the stock apears to be less risky and, when comparing its historical volatility, Tung Ho Textile is 1.15 times less risky than Chaintech Technology. The stock trades about -0.26 of its potential returns per unit of risk. The Chaintech Technology Corp is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 3,320 in Chaintech Technology Corp on December 1, 2024 and sell it today you would earn a total of 335.00 from holding Chaintech Technology Corp or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tung Ho Textile vs. Chaintech Technology Corp
Performance |
| Timeline |
| Tung Ho Textile |
| Chaintech Technology Corp |
Tung Ho and Chaintech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tung Ho and Chaintech Technology
The main advantage of trading using opposite Tung Ho and Chaintech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tung Ho position performs unexpectedly, Chaintech Technology 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 Chaintech Technology will offset losses from the drop in Chaintech Technology's long position.| Tung Ho vs. Shinkong Synthetic Fiber | Tung Ho vs. Tainan Spinning Co | Tung Ho vs. Zig Sheng Industrial | Tung Ho vs. Lealea Enterprise Co |
| Chaintech Technology vs. Sunplus Technology Co | Chaintech Technology vs. Silicon Integrated Systems | Chaintech Technology vs. Realtek Semiconductor Corp | Chaintech Technology vs. Elan Microelectronics Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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