Correlation Between Syscom Computer and Ma Kuang
Can any of the company-specific risk be diversified away by investing in both Syscom Computer and Ma Kuang 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 Syscom Computer and Ma Kuang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Syscom Computer Engineering and Ma Kuang Healthcare, you can compare the effects of market volatilities on Syscom Computer and Ma Kuang 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 Syscom Computer with a short position of Ma Kuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Syscom Computer and Ma Kuang.
Diversification Opportunities for Syscom Computer and Ma Kuang
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Syscom and 4139 is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Syscom Computer Engineering and Ma Kuang Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ma Kuang Healthcare and Syscom 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 Syscom Computer Engineering are associated (or correlated) with Ma Kuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ma Kuang Healthcare has no effect on the direction of Syscom Computer i.e., Syscom Computer and Ma Kuang go up and down completely randomly.
Pair Corralation between Syscom Computer and Ma Kuang
Assuming the 90 days trading horizon Syscom Computer Engineering is expected to under-perform the Ma Kuang. But the stock apears to be less risky and, when comparing its historical volatility, Syscom Computer Engineering is 1.04 times less risky than Ma Kuang. The stock trades about -0.06 of its potential returns per unit of risk. The Ma Kuang Healthcare is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,990 in Ma Kuang Healthcare on September 1, 2024 and sell it today you would lose (15.00) from holding Ma Kuang Healthcare or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Syscom Computer Engineering vs. Ma Kuang Healthcare
Performance |
| Timeline |
| Syscom Computer Engi |
| Ma Kuang Healthcare |
Syscom Computer and Ma Kuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Syscom Computer and Ma Kuang
The main advantage of trading using opposite Syscom Computer and Ma Kuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Syscom Computer position performs unexpectedly, Ma Kuang 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 Ma Kuang will offset losses from the drop in Ma Kuang's long position.The idea behind Syscom Computer Engineering and Ma Kuang Healthcare 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.| Ma Kuang vs. YuantaP shares Taiwan Electronics | Ma Kuang vs. YuantaP shares Taiwan Top | Ma Kuang vs. Fubon MSCI Taiwan | Ma Kuang vs. YuantaP shares Taiwan Mid Cap |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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