Correlation Between Clevo and Chia Her
Can any of the company-specific risk be diversified away by investing in both Clevo and Chia Her 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 Clevo and Chia Her into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clevo Co and Chia Her Industrial, you can compare the effects of market volatilities on Clevo and Chia Her 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 Clevo with a short position of Chia Her. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clevo and Chia Her.
Diversification Opportunities for Clevo and Chia Her
Very good diversification
The 3 months correlation between Clevo and Chia is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Clevo Co and Chia Her Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chia Her Industrial and Clevo 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 Clevo Co are associated (or correlated) with Chia Her. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chia Her Industrial has no effect on the direction of Clevo i.e., Clevo and Chia Her go up and down completely randomly.
Pair Corralation between Clevo and Chia Her
Assuming the 90 days trading horizon Clevo Co is expected to generate 1.05 times more return on investment than Chia Her. However, Clevo is 1.05 times more volatile than Chia Her Industrial. It trades about 0.08 of its potential returns per unit of risk. Chia Her Industrial is currently generating about 0.02 per unit of risk. If you would invest 3,380 in Clevo Co on September 3, 2024 and sell it today you would earn a total of 2,200 from holding Clevo Co or generate 65.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clevo Co vs. Chia Her Industrial
Performance |
| Timeline |
| Clevo |
| Chia Her Industrial |
Clevo and Chia Her Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clevo and Chia Her
The main advantage of trading using opposite Clevo and Chia Her positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clevo position performs unexpectedly, Chia Her 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 Chia Her will offset losses from the drop in Chia Her's long position.| Clevo vs. Inventec Corp | Clevo vs. Compal Electronics | Clevo vs. Cheng Uei Precision | Clevo vs. Pan International Industrial Corp |
| Chia Her vs. Carnival Industrial Corp | Chia Her vs. I Hwa Industrial Co | Chia Her vs. Hung Chou Fiber | Chia Her vs. Tung Ho Textile |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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