Correlation Between Zinwell and Feng Tay
Can any of the company-specific risk be diversified away by investing in both Zinwell and Feng Tay 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 Zinwell and Feng Tay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zinwell and Feng Tay Enterprises, you can compare the effects of market volatilities on Zinwell and Feng Tay 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 Zinwell with a short position of Feng Tay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zinwell and Feng Tay.
Diversification Opportunities for Zinwell and Feng Tay
Very weak diversification
The 3 months correlation between Zinwell and Feng is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Zinwell and Feng Tay Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feng Tay Enterprises and Zinwell 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 Zinwell are associated (or correlated) with Feng Tay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feng Tay Enterprises has no effect on the direction of Zinwell i.e., Zinwell and Feng Tay go up and down completely randomly.
Pair Corralation between Zinwell and Feng Tay
Assuming the 90 days trading horizon Zinwell is expected to generate 1.5 times more return on investment than Feng Tay. However, Zinwell is 1.5 times more volatile than Feng Tay Enterprises. It trades about -0.11 of its potential returns per unit of risk. Feng Tay Enterprises is currently generating about -0.27 per unit of risk. If you would invest 1,775 in Zinwell on September 1, 2024 and sell it today you would lose (85.00) from holding Zinwell or give up 4.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zinwell vs. Feng Tay Enterprises
Performance |
| Timeline |
| Zinwell |
| Feng Tay Enterprises |
Zinwell and Feng Tay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zinwell and Feng Tay
The main advantage of trading using opposite Zinwell and Feng Tay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zinwell position performs unexpectedly, Feng Tay 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 Tay will offset losses from the drop in Feng Tay's long position.| Zinwell vs. Clevo Co | Zinwell vs. D Link Corp | Zinwell vs. Cheng Uei Precision | Zinwell vs. Senao International Co |
| Feng Tay vs. Pou Chen Corp | Feng Tay vs. Eclat Textile Co | Feng Tay vs. Hotai Motor Co | Feng Tay vs. Giant Manufacturing 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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