Correlation Between Cub Elecparts and Tung Thih
Can any of the company-specific risk be diversified away by investing in both Cub Elecparts and Tung Thih 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 Cub Elecparts and Tung Thih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cub Elecparts and Tung Thih Electronic, you can compare the effects of market volatilities on Cub Elecparts and Tung Thih 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 Cub Elecparts with a short position of Tung Thih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cub Elecparts and Tung Thih.
Diversification Opportunities for Cub Elecparts and Tung Thih
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cub and Tung is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Cub Elecparts and Tung Thih Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tung Thih Electronic and Cub Elecparts 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 Cub Elecparts are associated (or correlated) with Tung Thih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tung Thih Electronic has no effect on the direction of Cub Elecparts i.e., Cub Elecparts and Tung Thih go up and down completely randomly.
Pair Corralation between Cub Elecparts and Tung Thih
Assuming the 90 days trading horizon Cub Elecparts is expected to generate 0.62 times more return on investment than Tung Thih. However, Cub Elecparts is 1.62 times less risky than Tung Thih. It trades about 0.06 of its potential returns per unit of risk. Tung Thih Electronic is currently generating about 0.02 per unit of risk. If you would invest 9,710 in Cub Elecparts on September 1, 2024 and sell it today you would earn a total of 290.00 from holding Cub Elecparts or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cub Elecparts vs. Tung Thih Electronic
Performance |
| Timeline |
| Cub Elecparts |
| Tung Thih Electronic |
Cub Elecparts and Tung Thih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cub Elecparts and Tung Thih
The main advantage of trading using opposite Cub Elecparts and Tung Thih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cub Elecparts position performs unexpectedly, Tung Thih 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 Tung Thih will offset losses from the drop in Tung Thih's long position.| Cub Elecparts vs. Hota Industrial Mfg | Cub Elecparts vs. Eclat Textile Co | Cub Elecparts vs. Makalot Industrial Co | Cub Elecparts vs. King Slide Works |
| Tung Thih vs. Hota Industrial Mfg | Tung Thih vs. BizLink Holding | Tung Thih vs. Cub Elecparts | Tung Thih vs. Hu Lane Associate |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |