Correlation Between Phihong Technology and Dais Analytic
Can any of the company-specific risk be diversified away by investing in both Phihong Technology and Dais Analytic 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 Phihong Technology and Dais Analytic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phihong Technology Co and Dais Analytic Corp, you can compare the effects of market volatilities on Phihong Technology and Dais Analytic 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 Phihong Technology with a short position of Dais Analytic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phihong Technology and Dais Analytic.
Diversification Opportunities for Phihong Technology and Dais Analytic
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Phihong and Dais is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Phihong Technology Co and Dais Analytic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dais Analytic Corp and Phihong Technology 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 Phihong Technology Co are associated (or correlated) with Dais Analytic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dais Analytic Corp has no effect on the direction of Phihong Technology i.e., Phihong Technology and Dais Analytic go up and down completely randomly.
Pair Corralation between Phihong Technology and Dais Analytic
If you would invest 3,785 in Phihong Technology Co on August 27, 2024 and sell it today you would earn a total of 445.00 from holding Phihong Technology Co or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phihong Technology Co vs. Dais Analytic Corp
Performance |
| Timeline |
| Phihong Technology |
| Dais Analytic Corp |
Phihong Technology and Dais Analytic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phihong Technology and Dais Analytic
The main advantage of trading using opposite Phihong Technology and Dais Analytic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phihong Technology position performs unexpectedly, Dais Analytic 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 Dais Analytic will offset losses from the drop in Dais Analytic's long position.| Phihong Technology vs. Sunny Friend Environmental | Phihong Technology vs. TTET Union Corp | Phihong Technology vs. ECOVE Environment Corp | Phihong Technology vs. Yulon Finance Corp |
| Dais Analytic vs. FREYR Battery SA | Dais Analytic vs. nVent Electric PLC | Dais Analytic vs. Hubbell | Dais Analytic vs. Advanced Energy Industries |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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