Correlation Between Chi Hua and Feature Integration
Can any of the company-specific risk be diversified away by investing in both Chi Hua and Feature Integration 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 Chi Hua and Feature Integration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chi Hua Fitness and Feature Integration Technology, you can compare the effects of market volatilities on Chi Hua and Feature Integration 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 Chi Hua with a short position of Feature Integration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chi Hua and Feature Integration.
Diversification Opportunities for Chi Hua and Feature Integration
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chi and Feature is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Chi Hua Fitness and Feature Integration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feature Integration and Chi Hua 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 Chi Hua Fitness are associated (or correlated) with Feature Integration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feature Integration has no effect on the direction of Chi Hua i.e., Chi Hua and Feature Integration go up and down completely randomly.
Pair Corralation between Chi Hua and Feature Integration
Assuming the 90 days trading horizon Chi Hua Fitness is expected to under-perform the Feature Integration. But the stock apears to be less risky and, when comparing its historical volatility, Chi Hua Fitness is 1.55 times less risky than Feature Integration. The stock trades about -0.32 of its potential returns per unit of risk. The Feature Integration Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,640 in Feature Integration Technology on October 28, 2024 and sell it today you would earn a total of 40.00 from holding Feature Integration Technology or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chi Hua Fitness vs. Feature Integration Technology
Performance |
| Timeline |
| Chi Hua Fitness |
| Feature Integration |
Chi Hua and Feature Integration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chi Hua and Feature Integration
The main advantage of trading using opposite Chi Hua and Feature Integration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chi Hua position performs unexpectedly, Feature Integration 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 Feature Integration will offset losses from the drop in Feature Integration's long position.| Chi Hua vs. Sunny Friend Environmental | Chi Hua vs. Cleanaway Co | Chi Hua vs. Charoen Pokphand Enterprise | Chi Hua vs. TTET Union Corp |
| Feature Integration vs. SS Healthcare Holding | Feature Integration vs. Sporton International | Feature Integration vs. RDC Semiconductor Co | Feature Integration vs. Chi Hua Fitness |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |