Correlation Between Zeng Hsing and Chicony Power
Can any of the company-specific risk be diversified away by investing in both Zeng Hsing and Chicony Power 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 Zeng Hsing and Chicony Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zeng Hsing Industrial and Chicony Power Technology, you can compare the effects of market volatilities on Zeng Hsing and Chicony Power 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 Zeng Hsing with a short position of Chicony Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zeng Hsing and Chicony Power.
Diversification Opportunities for Zeng Hsing and Chicony Power
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zeng and Chicony is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Zeng Hsing Industrial and Chicony Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicony Power Technology and Zeng Hsing 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 Zeng Hsing Industrial are associated (or correlated) with Chicony Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicony Power Technology has no effect on the direction of Zeng Hsing i.e., Zeng Hsing and Chicony Power go up and down completely randomly.
Pair Corralation between Zeng Hsing and Chicony Power
Assuming the 90 days trading horizon Zeng Hsing Industrial is expected to generate 0.64 times more return on investment than Chicony Power. However, Zeng Hsing Industrial is 1.56 times less risky than Chicony Power. It trades about 0.06 of its potential returns per unit of risk. Chicony Power Technology is currently generating about -0.01 per unit of risk. If you would invest 9,674 in Zeng Hsing Industrial on October 25, 2024 and sell it today you would earn a total of 926.00 from holding Zeng Hsing Industrial or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Zeng Hsing Industrial vs. Chicony Power Technology
Performance |
| Timeline |
| Zeng Hsing Industrial |
| Chicony Power Technology |
Zeng Hsing and Chicony Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zeng Hsing and Chicony Power
The main advantage of trading using opposite Zeng Hsing and Chicony Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zeng Hsing position performs unexpectedly, Chicony Power 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 Chicony Power will offset losses from the drop in Chicony Power's long position.| Zeng Hsing vs. TTET Union Corp | Zeng Hsing vs. Shinkong Insurance Co | Zeng Hsing vs. Huaku Development Co | Zeng Hsing vs. China Steel Chemical |
| Chicony Power vs. Li Kang Biomedical | Chicony Power vs. Air Asia Co | Chicony Power vs. MediaTek | Chicony Power vs. International CSRC Investment |
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 CEOs Directory module to screen CEOs from public companies around the world.
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