Correlation Between Quanta Computer and Feng Ching
Can any of the company-specific risk be diversified away by investing in both Quanta Computer and Feng Ching 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 Quanta Computer and Feng Ching into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quanta Computer and Feng Ching Metal, you can compare the effects of market volatilities on Quanta Computer and Feng Ching 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 Quanta Computer with a short position of Feng Ching. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quanta Computer and Feng Ching.
Diversification Opportunities for Quanta Computer and Feng Ching
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Quanta and Feng is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Quanta Computer and Feng Ching Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feng Ching Metal and Quanta Computer 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 Quanta Computer are associated (or correlated) with Feng Ching. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feng Ching Metal has no effect on the direction of Quanta Computer i.e., Quanta Computer and Feng Ching go up and down completely randomly.
Pair Corralation between Quanta Computer and Feng Ching
Assuming the 90 days trading horizon Quanta Computer is expected to under-perform the Feng Ching. In addition to that, Quanta Computer is 1.22 times more volatile than Feng Ching Metal. It trades about -0.08 of its total potential returns per unit of risk. Feng Ching Metal is currently generating about -0.01 per unit of volatility. If you would invest 1,915 in Feng Ching Metal on September 1, 2024 and sell it today you would lose (15.00) from holding Feng Ching Metal or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quanta Computer vs. Feng Ching Metal
Performance |
| Timeline |
| Quanta Computer |
| Feng Ching Metal |
Quanta Computer and Feng Ching Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quanta Computer and Feng Ching
The main advantage of trading using opposite Quanta Computer and Feng Ching positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanta Computer position performs unexpectedly, Feng Ching 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 Feng Ching will offset losses from the drop in Feng Ching's long position.| Quanta Computer vs. Compal Electronics | Quanta Computer vs. Asustek Computer | Quanta Computer vs. Delta Electronics | Quanta Computer vs. Inventec Corp |
| Feng Ching vs. Intai Technology | Feng Ching vs. Microtips Technology | Feng Ching vs. Maxigen Biotech | Feng Ching vs. V Tac Technology 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |