Correlation Between Quintain Steel and Landis Taipei
Can any of the company-specific risk be diversified away by investing in both Quintain Steel and Landis Taipei 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 Quintain Steel and Landis Taipei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quintain Steel Co and Landis Taipei Hotel, you can compare the effects of market volatilities on Quintain Steel and Landis Taipei 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 Quintain Steel with a short position of Landis Taipei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quintain Steel and Landis Taipei.
Diversification Opportunities for Quintain Steel and Landis Taipei
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Quintain and Landis is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Quintain Steel Co and Landis Taipei Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landis Taipei Hotel and Quintain Steel 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 Quintain Steel Co are associated (or correlated) with Landis Taipei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landis Taipei Hotel has no effect on the direction of Quintain Steel i.e., Quintain Steel and Landis Taipei go up and down completely randomly.
Pair Corralation between Quintain Steel and Landis Taipei
Assuming the 90 days trading horizon Quintain Steel Co is expected to generate 0.51 times more return on investment than Landis Taipei. However, Quintain Steel Co is 1.96 times less risky than Landis Taipei. It trades about -0.16 of its potential returns per unit of risk. Landis Taipei Hotel is currently generating about -0.09 per unit of risk. If you would invest 1,195 in Quintain Steel Co on September 1, 2024 and sell it today you would lose (40.00) from holding Quintain Steel Co or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quintain Steel Co vs. Landis Taipei Hotel
Performance |
| Timeline |
| Quintain Steel |
| Landis Taipei Hotel |
Quintain Steel and Landis Taipei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quintain Steel and Landis Taipei
The main advantage of trading using opposite Quintain Steel and Landis Taipei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quintain Steel position performs unexpectedly, Landis Taipei 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 Landis Taipei will offset losses from the drop in Landis Taipei's long position.| Quintain Steel vs. Tycoons Group Enterprise | Quintain Steel vs. Chung Hwa Pulp | Quintain Steel vs. China Man Made Fiber | Quintain Steel vs. Champion Building Materials |
| Landis Taipei vs. Formosa International Hotels | Landis Taipei vs. Ambassador Hotel | Landis Taipei vs. FDC International Hotels | Landis Taipei vs. First Hotel 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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