Correlation Between Chung Hung and Syntek Semiconductor
Can any of the company-specific risk be diversified away by investing in both Chung Hung and Syntek Semiconductor 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 Chung Hung and Syntek Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chung Hung Steel and Syntek Semiconductor Co, you can compare the effects of market volatilities on Chung Hung and Syntek Semiconductor 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 Chung Hung with a short position of Syntek Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chung Hung and Syntek Semiconductor.
Diversification Opportunities for Chung Hung and Syntek Semiconductor
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chung and Syntek is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Chung Hung Steel and Syntek Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syntek Semiconductor and Chung Hung 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 Chung Hung Steel are associated (or correlated) with Syntek Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syntek Semiconductor has no effect on the direction of Chung Hung i.e., Chung Hung and Syntek Semiconductor go up and down completely randomly.
Pair Corralation between Chung Hung and Syntek Semiconductor
Assuming the 90 days trading horizon Chung Hung Steel is expected to under-perform the Syntek Semiconductor. In addition to that, Chung Hung is 1.61 times more volatile than Syntek Semiconductor Co. It trades about -0.2 of its total potential returns per unit of risk. Syntek Semiconductor Co is currently generating about -0.3 per unit of volatility. If you would invest 1,090 in Syntek Semiconductor Co on September 12, 2024 and sell it today you would lose (75.00) from holding Syntek Semiconductor Co or give up 6.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chung Hung Steel vs. Syntek Semiconductor Co
Performance |
| Timeline |
| Chung Hung Steel |
| Syntek Semiconductor |
Chung Hung and Syntek Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chung Hung and Syntek Semiconductor
The main advantage of trading using opposite Chung Hung and Syntek Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chung Hung position performs unexpectedly, Syntek Semiconductor 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 Syntek Semiconductor will offset losses from the drop in Syntek Semiconductor's long position.| Chung Hung vs. China Steel Corp | Chung Hung vs. Yieh Phui Enterprise | Chung Hung vs. Ta Chen Stainless | Chung Hung vs. Yang Ming Marine |
| Syntek Semiconductor vs. WIN Semiconductors | Syntek Semiconductor vs. GlobalWafers Co | Syntek Semiconductor vs. Novatek Microelectronics Corp | Syntek Semiconductor vs. Ruentex Development Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |