Correlation Between Ta Ya and Sunny Friend
Can any of the company-specific risk be diversified away by investing in both Ta Ya and Sunny Friend 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 Sunny Friend 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 Sunny Friend Environmental, you can compare the effects of market volatilities on Ta Ya and Sunny Friend 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 Sunny Friend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ta Ya and Sunny Friend.
Diversification Opportunities for Ta Ya and Sunny Friend
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between 1609 and Sunny is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ta Ya Electric and Sunny Friend Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Friend Environ 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 Sunny Friend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Friend Environ has no effect on the direction of Ta Ya i.e., Ta Ya and Sunny Friend go up and down completely randomly.
Pair Corralation between Ta Ya and Sunny Friend
Assuming the 90 days trading horizon Ta Ya Electric is expected to generate 0.82 times more return on investment than Sunny Friend. However, Ta Ya Electric is 1.22 times less risky than Sunny Friend. It trades about 0.02 of its potential returns per unit of risk. Sunny Friend Environmental is currently generating about -0.19 per unit of risk. If you would invest 4,630 in Ta Ya Electric on August 25, 2024 and sell it today you would earn a total of 15.00 from holding Ta Ya Electric or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ta Ya Electric vs. Sunny Friend Environmental
Performance |
| Timeline |
| Ta Ya Electric |
| Sunny Friend Environ |
Ta Ya and Sunny Friend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ta Ya and Sunny Friend
The main advantage of trading using opposite Ta Ya and Sunny Friend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ta Ya position performs unexpectedly, Sunny Friend 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 Sunny Friend will offset losses from the drop in Sunny Friend's long position.| Ta Ya vs. Sunny Friend Environmental | Ta Ya vs. TTET Union Corp | Ta Ya vs. ECOVE Environment Corp | Ta Ya vs. Yulon Finance Corp |
| Sunny Friend vs. Cleanaway Co | Sunny Friend vs. Taiwan Secom Co | Sunny Friend vs. TTET Union Corp | Sunny Friend vs. Tehmag Foods |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |