Correlation Between Orient Semiconductor and PChome Online
Can any of the company-specific risk be diversified away by investing in both Orient Semiconductor and PChome Online 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 Orient Semiconductor and PChome Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orient Semiconductor Electronics and PChome Online, you can compare the effects of market volatilities on Orient Semiconductor and PChome Online 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 Orient Semiconductor with a short position of PChome Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orient Semiconductor and PChome Online.
Diversification Opportunities for Orient Semiconductor and PChome Online
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Orient and PChome is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Orient Semiconductor Electroni and PChome Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PChome Online and Orient Semiconductor 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 Orient Semiconductor Electronics are associated (or correlated) with PChome Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PChome Online has no effect on the direction of Orient Semiconductor i.e., Orient Semiconductor and PChome Online go up and down completely randomly.
Pair Corralation between Orient Semiconductor and PChome Online
Assuming the 90 days trading horizon Orient Semiconductor Electronics is expected to under-perform the PChome Online. But the stock apears to be less risky and, when comparing its historical volatility, Orient Semiconductor Electronics is 1.56 times less risky than PChome Online. The stock trades about -0.03 of its potential returns per unit of risk. The PChome Online is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,965 in PChome Online on September 12, 2024 and sell it today you would earn a total of 2,405 from holding PChome Online or generate 81.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orient Semiconductor Electroni vs. PChome Online
Performance |
| Timeline |
| Orient Semiconductor |
| PChome Online |
Orient Semiconductor and PChome Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orient Semiconductor and PChome Online
The main advantage of trading using opposite Orient Semiconductor and PChome Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orient Semiconductor position performs unexpectedly, PChome Online 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 PChome Online will offset losses from the drop in PChome Online's long position.| Orient Semiconductor vs. AU Optronics | Orient Semiconductor vs. Innolux Corp | Orient Semiconductor vs. Ruentex Development Co | Orient Semiconductor vs. WiseChip Semiconductor |
| PChome Online vs. President Chain Store | PChome Online vs. Uni President Enterprises Corp | PChome Online vs. Eclat Textile Co | PChome Online 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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