Correlation Between Clevo and Chenbro Micom
Can any of the company-specific risk be diversified away by investing in both Clevo and Chenbro Micom 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 Chenbro Micom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clevo Co and Chenbro Micom Co, you can compare the effects of market volatilities on Clevo and Chenbro Micom 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 Chenbro Micom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clevo and Chenbro Micom.
Diversification Opportunities for Clevo and Chenbro Micom
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clevo and Chenbro is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Clevo Co and Chenbro Micom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chenbro Micom 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 Chenbro Micom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chenbro Micom has no effect on the direction of Clevo i.e., Clevo and Chenbro Micom go up and down completely randomly.
Pair Corralation between Clevo and Chenbro Micom
Assuming the 90 days trading horizon Clevo Co is expected to generate 0.6 times more return on investment than Chenbro Micom. However, Clevo Co is 1.65 times less risky than Chenbro Micom. It trades about -0.06 of its potential returns per unit of risk. Chenbro Micom Co is currently generating about -0.1 per unit of risk. If you would invest 5,300 in Clevo Co on October 24, 2024 and sell it today you would lose (120.00) from holding Clevo Co or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clevo Co vs. Chenbro Micom Co
Performance |
| Timeline |
| Clevo |
| Chenbro Micom |
Clevo and Chenbro Micom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clevo and Chenbro Micom
The main advantage of trading using opposite Clevo and Chenbro Micom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clevo position performs unexpectedly, Chenbro Micom 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 Chenbro Micom will offset losses from the drop in Chenbro Micom's long position.| Clevo vs. Inventec Corp | Clevo vs. Compal Electronics | Clevo vs. Cheng Uei Precision | Clevo vs. Pan International Industrial Corp |
| Chenbro Micom vs. Getac Technology Corp | Chenbro Micom vs. ASRock Inc | Chenbro Micom vs. Elite Material Co | Chenbro Micom vs. Topco Scientific 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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