Correlation Between Tex Ray and Chain Chon
Can any of the company-specific risk be diversified away by investing in both Tex Ray and Chain Chon 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 Tex Ray and Chain Chon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tex Ray Industrial Co and Chain Chon Industrial, you can compare the effects of market volatilities on Tex Ray and Chain Chon 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 Tex Ray with a short position of Chain Chon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tex Ray and Chain Chon.
Diversification Opportunities for Tex Ray and Chain Chon
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tex and Chain is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Tex Ray Industrial Co and Chain Chon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chain Chon Industrial and Tex Ray 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 Tex Ray Industrial Co are associated (or correlated) with Chain Chon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chain Chon Industrial has no effect on the direction of Tex Ray i.e., Tex Ray and Chain Chon go up and down completely randomly.
Pair Corralation between Tex Ray and Chain Chon
Assuming the 90 days trading horizon Tex Ray Industrial Co is expected to generate 0.51 times more return on investment than Chain Chon. However, Tex Ray Industrial Co is 1.97 times less risky than Chain Chon. It trades about 0.07 of its potential returns per unit of risk. Chain Chon Industrial is currently generating about -0.32 per unit of risk. If you would invest 1,060 in Tex Ray Industrial Co on September 2, 2024 and sell it today you would earn a total of 20.00 from holding Tex Ray Industrial Co or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tex Ray Industrial Co vs. Chain Chon Industrial
Performance |
| Timeline |
| Tex Ray Industrial |
| Chain Chon Industrial |
Tex Ray and Chain Chon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tex Ray and Chain Chon
The main advantage of trading using opposite Tex Ray and Chain Chon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tex Ray position performs unexpectedly, Chain Chon 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 Chain Chon will offset losses from the drop in Chain Chon's long position.| Tex Ray vs. Chaintech Technology Corp | Tex Ray vs. Avision | Tex Ray vs. Clevo Co | Tex Ray vs. Elitegroup Computer Systems |
| Chain Chon vs. Trade Van Information Services | Chain Chon vs. C Media Electronics | Chain Chon vs. Mitake Information | Chain Chon vs. Pili International Multimedia |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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