Correlation Between StShine Optical and Bioteque
Can any of the company-specific risk be diversified away by investing in both StShine Optical and Bioteque 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 StShine Optical and Bioteque into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StShine Optical Co and Bioteque, you can compare the effects of market volatilities on StShine Optical and Bioteque 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 StShine Optical with a short position of Bioteque. Check out your portfolio center. Please also check ongoing floating volatility patterns of StShine Optical and Bioteque.
Diversification Opportunities for StShine Optical and Bioteque
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between StShine and Bioteque is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding StShine Optical Co and Bioteque in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioteque and StShine Optical 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 StShine Optical Co are associated (or correlated) with Bioteque. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioteque has no effect on the direction of StShine Optical i.e., StShine Optical and Bioteque go up and down completely randomly.
Pair Corralation between StShine Optical and Bioteque
Assuming the 90 days trading horizon StShine Optical Co is expected to generate 3.79 times more return on investment than Bioteque. However, StShine Optical is 3.79 times more volatile than Bioteque. It trades about 0.12 of its potential returns per unit of risk. Bioteque is currently generating about 0.15 per unit of risk. If you would invest 21,250 in StShine Optical Co on August 30, 2024 and sell it today you would earn a total of 1,200 from holding StShine Optical Co or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
StShine Optical Co vs. Bioteque
Performance |
| Timeline |
| StShine Optical |
| Bioteque |
StShine Optical and Bioteque Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StShine Optical and Bioteque
The main advantage of trading using opposite StShine Optical and Bioteque positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StShine Optical position performs unexpectedly, Bioteque 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 Bioteque will offset losses from the drop in Bioteque's long position.| StShine Optical vs. Chinese Maritime Transport | StShine Optical vs. Cleanaway Co | StShine Optical vs. Ambassador Hotel | StShine Optical vs. Tai Tung Communication |
| Bioteque vs. Maxigen Biotech | Bioteque vs. Chunghwa Chemical Synthesis | Bioteque vs. Sinphar Pharmaceutical Co | Bioteque vs. ScinoPharm Taiwan |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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