Correlation Between Taiwan Glass and Kee Tai
Can any of the company-specific risk be diversified away by investing in both Taiwan Glass and Kee Tai 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 Taiwan Glass and Kee Tai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taiwan Glass Ind and Kee Tai Properties, you can compare the effects of market volatilities on Taiwan Glass and Kee Tai 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 Taiwan Glass with a short position of Kee Tai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Glass and Kee Tai.
Diversification Opportunities for Taiwan Glass and Kee Tai
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Taiwan and Kee is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Glass Ind and Kee Tai Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kee Tai Properties and Taiwan Glass 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 Taiwan Glass Ind are associated (or correlated) with Kee Tai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kee Tai Properties has no effect on the direction of Taiwan Glass i.e., Taiwan Glass and Kee Tai go up and down completely randomly.
Pair Corralation between Taiwan Glass and Kee Tai
Assuming the 90 days trading horizon Taiwan Glass Ind is expected to generate 2.12 times more return on investment than Kee Tai. However, Taiwan Glass is 2.12 times more volatile than Kee Tai Properties. It trades about 0.02 of its potential returns per unit of risk. Kee Tai Properties is currently generating about 0.01 per unit of risk. If you would invest 1,985 in Taiwan Glass Ind on August 30, 2024 and sell it today you would earn a total of 10.00 from holding Taiwan Glass Ind or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taiwan Glass Ind vs. Kee Tai Properties
Performance |
| Timeline |
| Taiwan Glass Ind |
| Kee Tai Properties |
Taiwan Glass and Kee Tai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taiwan Glass and Kee Tai
The main advantage of trading using opposite Taiwan Glass and Kee Tai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiwan Glass position performs unexpectedly, Kee Tai 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 Kee Tai will offset losses from the drop in Kee Tai's long position.| Taiwan Glass vs. Yulon Motor Co | Taiwan Glass vs. Far Eastern Department | Taiwan Glass vs. China Steel Corp | Taiwan Glass vs. Chang Hwa Commercial |
| Kee Tai vs. Tainan Spinning Co | Kee Tai vs. Carnival Industrial Corp | Kee Tai vs. Symtek Automation Asia | Kee Tai vs. CTCI 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |