Correlation Between Ta Jiang and Kaulin Mfg
Can any of the company-specific risk be diversified away by investing in both Ta Jiang and Kaulin Mfg 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 Ta Jiang and Kaulin Mfg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ta Jiang Co and Kaulin Mfg, you can compare the effects of market volatilities on Ta Jiang and Kaulin Mfg 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 Ta Jiang with a short position of Kaulin Mfg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ta Jiang and Kaulin Mfg.
Diversification Opportunities for Ta Jiang and Kaulin Mfg
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 1453 and Kaulin is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ta Jiang Co and Kaulin Mfg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaulin Mfg and Ta Jiang 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 Ta Jiang Co are associated (or correlated) with Kaulin Mfg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaulin Mfg has no effect on the direction of Ta Jiang i.e., Ta Jiang and Kaulin Mfg go up and down completely randomly.
Pair Corralation between Ta Jiang and Kaulin Mfg
Assuming the 90 days trading horizon Ta Jiang Co is expected to under-perform the Kaulin Mfg. In addition to that, Ta Jiang is 2.28 times more volatile than Kaulin Mfg. It trades about -0.13 of its total potential returns per unit of risk. Kaulin Mfg is currently generating about -0.13 per unit of volatility. If you would invest 1,410 in Kaulin Mfg on December 15, 2024 and sell it today you would lose (50.00) from holding Kaulin Mfg or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ta Jiang Co vs. Kaulin Mfg
Performance |
| Timeline |
| Ta Jiang |
| Kaulin Mfg |
Ta Jiang and Kaulin Mfg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ta Jiang and Kaulin Mfg
The main advantage of trading using opposite Ta Jiang and Kaulin Mfg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ta Jiang position performs unexpectedly, Kaulin Mfg 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 Kaulin Mfg will offset losses from the drop in Kaulin Mfg's long position.| Ta Jiang vs. De Licacy Industrial | ||
| Ta Jiang vs. Wisher Industrial Co | ||
| Ta Jiang vs. Tainan Enterprises Co | ||
| Ta Jiang vs. Nien Hsing Textile |
| Kaulin Mfg vs. Tainan Enterprises Co | ||
| Kaulin Mfg vs. Nien Hsing Textile | ||
| Kaulin Mfg vs. De Licacy Industrial | ||
| Kaulin Mfg vs. Kwong Fong Industries |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |