Correlation Between Tsang Yow and Emerging Display
Can any of the company-specific risk be diversified away by investing in both Tsang Yow and Emerging Display 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 Tsang Yow and Emerging Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tsang Yow Industrial and Emerging Display Technologies, you can compare the effects of market volatilities on Tsang Yow and Emerging Display 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 Tsang Yow with a short position of Emerging Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsang Yow and Emerging Display.
Diversification Opportunities for Tsang Yow and Emerging Display
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tsang and Emerging is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Tsang Yow Industrial and Emerging Display Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Display Tec and Tsang Yow 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 Tsang Yow Industrial are associated (or correlated) with Emerging Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Display Tec has no effect on the direction of Tsang Yow i.e., Tsang Yow and Emerging Display go up and down completely randomly.
Pair Corralation between Tsang Yow and Emerging Display
Assuming the 90 days trading horizon Tsang Yow Industrial is expected to under-perform the Emerging Display. But the stock apears to be less risky and, when comparing its historical volatility, Tsang Yow Industrial is 1.77 times less risky than Emerging Display. The stock trades about -0.2 of its potential returns per unit of risk. The Emerging Display Technologies is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,670 in Emerging Display Technologies on October 13, 2024 and sell it today you would lose (20.00) from holding Emerging Display Technologies or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsang Yow Industrial vs. Emerging Display Technologies
Performance |
| Timeline |
| Tsang Yow Industrial |
| Emerging Display Tec |
Tsang Yow and Emerging Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsang Yow and Emerging Display
The main advantage of trading using opposite Tsang Yow and Emerging Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsang Yow position performs unexpectedly, Emerging Display 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 Emerging Display will offset losses from the drop in Emerging Display's long position.| Tsang Yow vs. Gordon Auto Body | Tsang Yow vs. YCC Parts MFG | Tsang Yow vs. Depo Auto Parts | Tsang Yow vs. Hsing Ta Cement |
| Emerging Display vs. WinMate Communication INC | Emerging Display vs. First Hotel Co | Emerging Display vs. FarGlory Hotel Co | Emerging Display vs. Far EasTone Telecommunications |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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