Correlation Between Feng Ching and Emerging Display
Can any of the company-specific risk be diversified away by investing in both Feng Ching and Emerging Display 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 Feng Ching and Emerging Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feng Ching Metal and Emerging Display Technologies, you can compare the effects of market volatilities on Feng Ching and Emerging Display 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 Feng Ching with a short position of Emerging Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feng Ching and Emerging Display.
Diversification Opportunities for Feng Ching and Emerging Display
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Feng and Emerging is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Feng Ching Metal and Emerging Display Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Display Tec and Feng Ching 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 Feng Ching Metal are associated (or correlated) with Emerging Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Display Tec has no effect on the direction of Feng Ching i.e., Feng Ching and Emerging Display go up and down completely randomly.
Pair Corralation between Feng Ching and Emerging Display
Assuming the 90 days trading horizon Feng Ching Metal is expected to under-perform the Emerging Display. In addition to that, Feng Ching is 1.4 times more volatile than Emerging Display Technologies. It trades about 0.0 of its total potential returns per unit of risk. Emerging Display Technologies is currently generating about 0.03 per unit of volatility. If you would invest 2,380 in Emerging Display Technologies on November 28, 2024 and sell it today you would earn a total of 530.00 from holding Emerging Display Technologies or generate 22.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feng Ching Metal vs. Emerging Display Technologies
Performance |
| Timeline |
| Feng Ching Metal |
| Emerging Display Tec |
Feng Ching and Emerging Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feng Ching and Emerging Display
The main advantage of trading using opposite Feng Ching and Emerging Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feng Ching position performs unexpectedly, Emerging Display 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 Emerging Display will offset losses from the drop in Emerging Display's long position.| Feng Ching vs. Da Cin Construction Co | Feng Ching vs. China Construction Bank | Feng Ching vs. Lihtai Construction Enterprise | Feng Ching vs. Advanced Wireless Semiconductor |
| Emerging Display vs. Microelectronics Technology | Emerging Display vs. Bright Led Electronics | Emerging Display vs. Taiwan Chinsan Electronic | Emerging Display vs. China Petrochemical Development |
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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