Correlation Between Clevo and Paiho Shih
Can any of the company-specific risk be diversified away by investing in both Clevo and Paiho Shih 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 Paiho Shih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clevo Co and Paiho Shih Holdings, you can compare the effects of market volatilities on Clevo and Paiho Shih 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 Paiho Shih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clevo and Paiho Shih.
Diversification Opportunities for Clevo and Paiho Shih
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Clevo and Paiho is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Clevo Co and Paiho Shih Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paiho Shih Holdings 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 Paiho Shih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paiho Shih Holdings has no effect on the direction of Clevo i.e., Clevo and Paiho Shih go up and down completely randomly.
Pair Corralation between Clevo and Paiho Shih
Assuming the 90 days trading horizon Clevo Co is expected to generate 0.88 times more return on investment than Paiho Shih. However, Clevo Co is 1.14 times less risky than Paiho Shih. It trades about 0.02 of its potential returns per unit of risk. Paiho Shih Holdings is currently generating about -0.01 per unit of risk. If you would invest 5,620 in Clevo Co on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Clevo Co or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Clevo Co vs. Paiho Shih Holdings
Performance |
| Timeline |
| Clevo |
| Paiho Shih Holdings |
Clevo and Paiho Shih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clevo and Paiho Shih
The main advantage of trading using opposite Clevo and Paiho Shih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clevo position performs unexpectedly, Paiho Shih 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 Paiho Shih will offset losses from the drop in Paiho Shih's long position.The idea behind Clevo Co and Paiho Shih Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Paiho Shih vs. Chaintech Technology Corp | Paiho Shih vs. AVerMedia Technologies | Paiho Shih vs. Avision | Paiho Shih vs. Clevo 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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