Correlation Between Ta Ya and P Duke
Can any of the company-specific risk be diversified away by investing in both Ta Ya and P Duke 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 Ta Ya and P Duke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ta Ya Electric and P Duke Technology Co, you can compare the effects of market volatilities on Ta Ya and P Duke 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 Ta Ya with a short position of P Duke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ta Ya and P Duke.
Diversification Opportunities for Ta Ya and P Duke
Excellent diversification
The 3 months correlation between 1609 and 8109 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ta Ya Electric and P Duke Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on P Duke Technology and Ta Ya 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 Ta Ya Electric are associated (or correlated) with P Duke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of P Duke Technology has no effect on the direction of Ta Ya i.e., Ta Ya and P Duke go up and down completely randomly.
Pair Corralation between Ta Ya and P Duke
Assuming the 90 days trading horizon Ta Ya Electric is expected to under-perform the P Duke. In addition to that, Ta Ya is 1.8 times more volatile than P Duke Technology Co. It trades about -0.22 of its total potential returns per unit of risk. P Duke Technology Co is currently generating about 0.25 per unit of volatility. If you would invest 8,790 in P Duke Technology Co on October 23, 2024 and sell it today you would earn a total of 390.00 from holding P Duke Technology Co or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ta Ya Electric vs. P Duke Technology Co
Performance |
| Timeline |
| Ta Ya Electric |
| P Duke Technology |
Ta Ya and P Duke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ta Ya and P Duke
The main advantage of trading using opposite Ta Ya and P Duke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ta Ya position performs unexpectedly, P Duke 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 P Duke will offset losses from the drop in P Duke's long position.| Ta Ya vs. Walsin Lihwa Corp | Ta Ya vs. Hua Eng Wire | Ta Ya vs. Hong Tai Electric | Ta Ya vs. Chung Hsin Electric Machinery |
| P Duke vs. Sporton International | P Duke vs. Planet Technology | P Duke vs. Posiflex Technology | P Duke vs. ECOVE Environment Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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