Correlation Between De Licacy and Maywufa
Can any of the company-specific risk be diversified away by investing in both De Licacy and Maywufa 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 De Licacy and Maywufa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between De Licacy Industrial and Maywufa Co, you can compare the effects of market volatilities on De Licacy and Maywufa 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 De Licacy with a short position of Maywufa. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Licacy and Maywufa.
Diversification Opportunities for De Licacy and Maywufa
Significant diversification
The 3 months correlation between 1464 and Maywufa is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding De Licacy Industrial and Maywufa Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maywufa and De Licacy 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 De Licacy Industrial are associated (or correlated) with Maywufa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maywufa has no effect on the direction of De Licacy i.e., De Licacy and Maywufa go up and down completely randomly.
Pair Corralation between De Licacy and Maywufa
Assuming the 90 days trading horizon De Licacy is expected to generate 1.96 times less return on investment than Maywufa. But when comparing it to its historical volatility, De Licacy Industrial is 1.01 times less risky than Maywufa. It trades about 0.02 of its potential returns per unit of risk. Maywufa Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,870 in Maywufa Co on September 3, 2024 and sell it today you would earn a total of 420.00 from holding Maywufa Co or generate 22.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Licacy Industrial vs. Maywufa Co
Performance |
| Timeline |
| De Licacy Industrial |
| Maywufa |
De Licacy and Maywufa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Licacy and Maywufa
The main advantage of trading using opposite De Licacy and Maywufa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Licacy position performs unexpectedly, Maywufa 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 Maywufa will offset losses from the drop in Maywufa's long position.| De Licacy vs. Tainan Spinning Co | De Licacy vs. Chia Her Industrial | De Licacy vs. WiseChip Semiconductor | De Licacy vs. Novatek Microelectronics Corp |
| Maywufa vs. Standard Foods Corp | Maywufa vs. TTET Union Corp | Maywufa vs. Uni President Enterprises Corp | Maywufa vs. Charoen Pokphand 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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